War, Winter, and Supply Chain Challenges Threaten European Gas Price Stability

November in Europe is normally the start of heating season proper. Even with a prolonged summer and a soft start to the fall, by late November, winter temperatures drop, and the heating gets cranked up. And gas prices start climbing higher. Last year, Europe lucked out with a milder-than-usual winter.

This year, things look different. For now, Europe’s gas storage caverns are full to the brim thanks to a steady flow of U.S. LNG. But now that peak consumption season has begun, demand will rise, just like demand in Asia. And despite ample supply…