“This, in our view, will set the stage for the sense of urgency to destroy demand we see currently to be gradually replaced by a sense of market relief for having made it through winter,” its analysts said. Goldman said it expected storage facilities to remain more than 20% full by the end of March next year. Businesses and consumers are also being asked to use less energy. Governments hope to create a gas buffer in case supplies from Russia are cut off through winter. Goldman’s analysts said they expected storage facilities to be 90% full on average by the end of October, before an EU-wide target of 80% full by 1 November. “This is the puzzle Europe has successfully solved for the past year, with a combination of gas demand destruction within Europe and across buyers elsewhere in the world, resulting in above-average inventory builds.” And while we often hear the question of what this will do to storage, we believe a better approach is to ask what this will do to prices, so that storage continues to build as needed. Goldman Sachs analysts said: “The indefinite reduction in NS1 exports to zero leaves north-west Europe without any Russian gas going forward. Goldman said on Tuesday it expected European wholesale natural gas prices to fall from about 215 (£186) a megawatt hour to below 100 a MWh by the end of the first quarter of next year. This month Gazprom extended the shutdown of gas flows through the pipeline, providing no timeframe for a reopening. The frenzied dash for supplies has pushed up the wholesale price of gas. ![]() European countries have rushed to fill their gas storage facilities before the winter after Russia’s Gazprom reduced supplies, including through the important Nord Stream 1 (NS1) pipeline.
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