Mmastodon WorldEU Politics first seen 4 h ago, last 18 min ago, peak #1

Europe's seasonal gas storage trade is breaking down

Original: For decades, traders have bought cheap gas in summer, stored it and then sold it at a higher price when needed to ensure

For decades, traders bought cheap gas in summer, stored it, and sold it at higher winter prices, guaranteeing Europe's heating supply. That model is now unravelling. The usual seasonal price gaps that made storage profitable have narrowed or disappeared, undermining the incentive to fill underground facilities and raising concerns about how the continent will secure winter fuel.

Why now: Unusually narrow seasonal gas price spreads are making the storage trade unprofitable just ahead of winter

European Uniongas traders

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Evidence

• For decades, traders have bought cheap gas in summer, stored it and then sold it at a higher price when needed to ensure Europe had enough of the fuel for winter, but the economics of that trade are unraveling. https://www. japantimes.co.jp/business/2026… · thejapantimes · 7

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