Equinor executives warn that Europe faces a critical gas shortfall if shipping through the Strait of Hormuz remains disrupted for one to three months. Helle Ostergaard Kristiansen, Senior Vice President for Gas & Power Trading, told Reuters that a prolonged closure would be critical for the region.
European gas storage levels currently sit at just over 35% capacity. This inventory level remains significantly below the seasonal average of approximately 50%.
Current market prices disincentivize immediate storage injections for the upcoming winter. Winter delivery contracts are trading at lower prices than summer contracts, hindering efforts to refill inventories.