Technical Analysis

Milder weather has helped ease Europe’s plight so far this winter


The energy crunch in Europe has been a key story since the Russia-Ukraine conflict and there were major worries in the past few months over how things are going to play out during the winter. The good news is that milder weather has helped with the situation, meaning fewer households have been cranking up the heat this December.

The data from Gas Infrastructure Europe showed Germany’s gas storage to be at 88.2% full as of Tuesday, up some 1% from the week before.

Of note, gas demand in Germany fell to a six-week low over the Christmas weekend – clocking in at just 2.2 TWh/day according to THE.

As for why this is relevant, it is because Germany is Europe’s biggest consumer of gas and as storage levels are able to keep sufficiently high, it means a reduced probability of shortages. In turn, that will also help reflect lower gas prices – which will be a welcome development for households in general.

For now, it is still early as gas consumption will continue to dwindle down the storage levels all the way through spring before being replenished in the autumn again.

/EUR

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