Europe nears gas storage target early despite Russian supply cut – Bloomberg

The market’s cautious optimism gained additional strength from Bloomberg’s latest news surrounding the Eurozone’s ability to battle the energy crisis during Tuesday’s Asian session.

“The European Union is set to meet its gas storage filling goal two months ahead of target as the bloc braces for a tough winter with Russia limiting supplies and soaring energy prices raging through the continent,” mentioned Bloomberg.

Key quotes

Reserves in the EU were filled up to 79.4% as of Aug. 27 compared with the target of 80% by Nov. 1, according to Gas Infrastructure Europe inventory data.

The EU bolstered its storage rules earlier this year after levels last winter turned out lower than in past years, particularly in German sites controlled by Russian exporter Gazprom PJSC, a factor that added to sharp increases in energy prices. 

With bigger reserves, European nations are slightly better placed to face a further supply cut as Gazprom starts unexpected maintenance on the Nord Stream pipeline on Wednesday. 

European natural gas prices on Monday plunged the most since March after Germany said its gas stores are filling up faster than planned. 

EUR/USD extends recovery

EUR/USD picks up bids to extend the previous day’s corrective pullback from the weekly low to 1.0010 by the press time.

Also read: EUR/USD struggles around parity amid hawkish ECB/Fed speakers, German inflation eyed