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18.08.26 - 10:12
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"Generates A Number Of Risks": UBS Warns German NatGas Storage Levels Alarmingly Below Seasonal Norms (ZeroHedge)
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"Generates A Number Of Risks": UBS Warns German NatGas Storage Levels Alarmingly Below Seasonal Norms
Following up on our "Winter Is Coming: Europe Faces Twin Diesel And NatGas Crunch" note earlier this month, which focused on Europe as a whole, UBS analysts focused on Germany's natural gas inventories Monday morning and warned that levels are alarmingly low for this time of year, raising the risk of elevated prices and a renewed supply crunch if the Northern Hemisphere experiences a severe winter.
Simon Penn, a London-based UBS macro strategist, wrote earlier today that Germany's NatGas storage is just 48% full, compared with 65% a year ago and 75% during the 2022 energy crisis.
We would go a step further: inventories are now at their lowest level for this time of year in 17 years.
Penn added more color:
Economist Felix Huefner sees Germany hitting 65% in November, compared to the government target of 80% and the EU's target of 90%. This generates a number of risks. ...
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