Europe confronts dwindling gas and diesel reserves before winter

Europe is entering the heating season with underground gas storage only about 55 % full, the lowest level for this time of year since 2021 and well below the five‑year average. The European Union’s target of 80 % capacity is unlikely to be met, according to Equinor’s chief executive. Reduced pipeline supplies from Russia have forced the continent to rely more on liquefied natural gas (LNG), but July imports are set to be the lowest since September 2024 as Europe competes with Asian buyers and faces Middle‑East tensions that threaten LNG routes through the Strait of Hormuz.

At the same time, diesel inventories are falling, with European diesel stocks at their lowest since 2022. Brent crude rose nearly 8 % in one day to above $90 per barrel, while U.S. crude inventories hit their lowest level since 2018. Gas prices have surged past €60 per megawatt‑hour, raising costs for energy‑intensive industries and adding inflationary pressure, especially in Poland where the main concern is price rather than supply. The overall picture leaves the European economy more vulnerable to a harsh winter, supply disruptions, or further geopolitical escalation.