Elevated energy prices stemming from the war in Ukraine to persist for several years, Trend reports with reference to Fitch Solutions.
"Natural gas storage levels across the EU continue to post strong gains as high prices and voluntary efforts to conserve natural gas lower consumption, adding to storage volumes. The healthy pace of stock-building, with European inventories reaching the 80 percent of capacity November target just days earlier, puts Europe on track to near 90 percent of capacity or better heading into the peak demand season from November," reads the report released by Fitch Solutions.
Analysts from Fitch Solutions note that while the fundamental outlook for natural gas supply has improved over the last several months, acute power generation issue has helped keep electricity prices high, further adding to the bullish sentiment supporting price gains.
"The risk of further curtailment of supplies from Russia remains acute, as do extreme temperature events which could drive up energy demand including natural gas for power, given the ongoing drought conditions in Europe which have limited other forms of both renewable and nuclear power across the region."