Germany's Gas Storage Critically Low, UBS Warns of Potential Price Surge and Inflation Risks This Winter

Germany's natural gas storage has fallen to its lowest level for this time of year in 17 years, currently at just 48%, far below last year's 65% and 2022's 75%. UBS warns that refilling storage is constrained by surging prices, fiscal pressure, and regional competition, while LNG regasification facilities and low water levels on the Rhine River also limit supply. If a severe winter hits, Germany could face the dual impact of soaring gas prices and supply shortages, which would in turn push up inflation and weigh on economic growth.