Europe's High Gas Storage and Supply Diversity Lower Risk of Price Spikes

• Europe has record-high natural gas storage levels entering the refill season, which reduces the risk of price spikes next winter.

• Reduced reliance on Russian natural gas imports after its invasion of Ukraine also lowers the risk of price spikes.

• Europe continues efforts to diversify its natural gas supply sources, which should result in lower prices.

• Thanks to full storage, mild weather, and steady LNG inflow, European benchmark gas prices recently hit a 3-year low.

• Six analyst forecasts see Dutch benchmark gas futures trading in a range of $31-$40 per megawatt-hour for next winter, compared to around $29 currently.