Natural gas stocks across the European Union have fallen to exceptionally low levels for this point in the season, raising concerns about higher purchasing costs in the coming winter months. Storage facilities currently stand at just below 58 percent of capacity, a figure well short of the long-term average recorded at the same time in previous years.
The sharp drop has been driven largely by a major disruption to liquefied natural gas supplies. A blockade of the Strait of Hormuz, linked to the ongoing conflict involving the United States, Israel and Iran, has removed approximately one-fifth of the global LNG volumes that normally originate from Qatar. As a result, Europe has become more dependent on seaborne cargoes at a time when competition for those cargoes has intensified.
EU natural gas inventories in % of full – EU at 58.10%
Germany at 47.62%, Italy at 76.55%, France at 58.71%, Netherlands at 38.53%, Austria at 61.49%, Spain at 72.40% https://t.co/WThmqiwN4m pic.twitter.com/5jYNpwGYfz
— Giovanni Staunovo🛢 (@staunovo) August 7, 2026
Analysts now expect storage levels to reach only 67 to 76 percent before the onset of winter, leaving open the possibility that the European Union’s official target of 80 percent may not be met. The greater reliance on LNG has also reduced the protective effect of longer-term fixed-price pipeline contracts that previously helped stabilise costs.
Current market conditions further discourage stock-building. Spot prices are higher than prices for delivery later in the winter, a situation known as backwardation. Under these circumstances, traders have little financial reason to inject additional gas into storage.
Should temperatures drop sharply later in the season, both households and industrial users could face significant pressure from elevated energy costs and tighter supply.
EU gas storage for this time of year is at its lowest since at least 2011 after the US-Israeli war on Iran squeezed global supply. Is Europe heading for a chilly winter and higher prices? https://t.co/TNY96REEzJ pic.twitter.com/wemPgjZhlK
— Reuters (@Reuters) August 7, 2026