Europe's gas storage has fallen to its lowest level since 2022 as Middle East disruptions push energy prices higher. Rising fuel costs threaten household budgets, industry and jobs, while extra U.S. LNG supply may offer some relief.
Europe's gas storage has fallen to its lowest level since 2022, and fuel costs are expected to keep rising through the winter. Ongoing energy trade constraints and threats to Middle East energy infrastructure are expected to limit global supplies, hitting consumers hard unless governments intervene.
Storage stands at 67% against an 80% seasonal average
In September, European storage stood at around 67% full, compared with a seasonal average of around 80%. Germany, which has the largest storage capacity in Europe, is roughly half full. It is expected to miss its official 80% target this year.
Meanwhile, the price of natural gas in Europe has more than doubled since the outbreak of the U.S.-Israeli-led war in Iran. Strict limits on energy trade through the Strait of Hormuz have constrained supplies. Between 25 September 2025 and 2026, oil prices increased by 65%, diesel by 45% and jet fuel by 112%.
Brussels weighs the impact
The EU is thought to have paid an additional €100 billion on oil and gas so far this year. As a result, EU ministers are seeking ways to manage the impact of high fuel prices. EU energy commissioner Dan Jorgensen warned of very high oil and gas prices, though he reassured consumers that no supply issues are expected.
The United States has focused on increasing oil and gas production, but this can only partly fill the gap. Independent LNG and shipping analyst Pratiksha Negi said she expects Europe to remain the principal destination for marginal U.S. LNG at the start of Q4 2026, given the significant storage deficit this season.
Jobs and factories face pressure
Higher fuel prices are driving up operating costs in factories and other facilities, which could lead companies to charge more for manufactured goods. Companies that cannot secure or afford adequate fuel may be forced to suspend operations in the winter, leading to job cuts.
A recent forecast by the Item Club suggested that in the United Kingdom, as many as 163,000 jobs could be lost in 2026 in relation to the war. According to Centrica CEO Chris O'Shea in August, Britain had "almost no gas in storage" for the coming winter.
Restrictions on global oil trade are likely to last well into 2027.
Source: Oilprice.com
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