European natural gas futures climbed back above €47/MWh on Wednesday, though they retained most of the previous session’s losses. The move came amid reports that the IEA is proposing the largest-ever coordinated release of oil reserves to rein in surging energy prices. If carried out, the move would exceed the 182 million barrels that IEA members released into the market in 2022, following Russia’s invasion of Ukraine.
Earlier this week, G7 finance ministers also signaled their readiness to draw on strategic reserves if needed. Even so, market sentiment remains cautious. The Strait of Hormuz is still closed, and production has been suspended at Qatar’s LNG facilities, which rank among the largest globally. Analysts warn that the disruption to Qatari output could wipe out most of the global LNG supply surplus previously expected for 2026.
The situation is particularly critical for Europe, where gas storage levels have fallen below 30%. The region will need to secure substantial import volumes over the summer to rebuild inventories ahead of the next heating season.
