It appears that last week EU and UK gas storage saw a single day of net withdrawals due to the combined effect of reduced Norwegian and Algerian flows.
This is the result of many countries in Central and NW Europe turning to withdrawals for a few days last week.
This was expected and already priced in by the market and is just a repetition of a similar dynamic observed last year.
With Norwegian flows expected to recover in the coming weeks, the market remains well supplied ahead of the winter.
Demand in the year-to-date remains a few percentage points below 2023 levels and, as expected, there continue to be no meaningful flows of gas to Ukraine for injection into storage, as instead had been the case last year.
Therefore, provided the weather does not unexpectedly turn to very harsh conditions, storage injections in the coming weeks may recover to levels higher than what observed last year, pushing total volume close to full capacity even earlier than what happened in 2023.
Source: Giovanni BETTINELLI (GFB Insight)
