Europe energy crisis intensifies amid rising gas prices and storage concerns

Europe is facing renewed energy instability as natural gas prices rise and storage levels remain below historical averages. In Germany, gas storage was reported at just over 50% in early September, significantly lower than the 67% recorded during the same period last year, making winter supply targets difficult to achieve.

Geopolitical tensions, including potential disruptions in the Middle East and discussions regarding the possible resumption of Russian gas via the AfD party and Nord Stream pipelines, are driving market volatility. These fluctuations pose liquidity risks for energy traders and threaten to increase retail inflation.

In Greece, 16 industrial associations and the EVIKEN union have issued an SOS, warning that over 700 energy-intensive manufacturing units are exposed to extreme price swings. They are calling on the Greek government to activate European support mechanisms, such as the Net-Zero Industry Act and the CISAF/METSAF frameworks, to protect industrial competitiveness. While countries like Germany, Italy, and Austria are already utilizing EU tools to shield their industries, Greek manufacturers argue they lack a similar protective framework to prevent economic damage.