For now, Europe has had a relatively mild winter. Increased heat demand is now affecting gas supplies. The fact that gas prices aren’t going up much faster yet has everything to do with reserves. The gas depots are still 91% full, which is higher than usual this time of year.
Counteract fluctuations
Meanwhile, European Union countries are discussing ways to ease market volatility after energy bills soared to record highs earlier this year. Several countries are calling for a stricter limitation of gas costs. The Netherlands has proposed to cap the price of stored gas, so that fields can be replenished next year. EU energy ministers will discuss the matter next week.
Supply is expected to remain limited, especially for winter 2023-2024. As a result, higher prices will also continue, according to a report by the Oxford Institute for Energy Studies. If a price cap makes it more difficult to balance supply and demand, it can make the situation even worse.