IEA: Europe's natural gas reserves dip to 13 year low

The International Energy Agency says Europe's natural gas reserves have fallen to a 13-year low, warning that the region could be particularly vulnerable if winter temperatures turn out to be colder than expected.

With ongoing conflicts in Europe and the Middle East, the latest IEA report on global natural gas security assessment shows that structural changes over the past decade are reshaping the natural gas market.

Disruptions to shipping through the Strait of Hormuz have reduced liquefied natural gas loadings from the Persian Gulf by over 60 billion cubic metres over the past six months. And that has driven natural gas prices in Asia and Europe to their highest levels since the supply crisis in 2022 and 2023.

As of the end of October, natural gas reserves stood at only 75% -- not only below the EU's minimum target of 80%, but also the lowest level in 13 years since 2013.

The IEA warns Europe could be especially vulnerable if this winter is colder than expected, or in case of technical failures or other supply disruptions.