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Europe needs higher gas prices to refill winter storage, Goldman Sachs warns
Europe’s storage is about 62% full, the lowest for this time of year in nearly two decades, and Goldman Sachs says winter management would be difficult without higher prices by December.
Europe needs higher natural gas prices by December to secure enough supply for next winter, according to analysis cited by OilPrice that references a Goldman Sachs note.
The report says the Strait of Hormuz crisis, combined with elevated spot LNG prices in Asia, has left Europe losing out to Asian buyers for limited spot LNG supply, particularly as Europe works to build inventories during spring and summer.
Gas Infrastructure Europe data cited in the analysis shows current storage levels are about 62% full, the lowest for this time of year in nearly two decades, and also below the five-year average.
Goldman Sachs analysts warn that benchmark prices at the Dutch Title Transfer Facility, the TTF, would not be enough to manage storage through winter if Middle East energy exports normalize only gradually through 2027.
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