Europe experiences Arctic blast, testing energy resilience

Europe is facing a sudden drop in temperatures due to an Arctic blast, with freezing conditions expected in countries like the UK, Germany, France, and Spain. This shift comes as natural gas storage levels are at only 36% capacity, much lower than last year. The cold weather will challenge renewable energy generation, leading to increased demand for natural gas. As a result, European gas futures are rising, reflecting concerns over supply amid low storage levels and reduced wind power generation. The International Energy Agency has warned of a tighter liquefied natural gas market in 2025, requiring larger gas inflows than in previous years. Despite this, Europe has managed to secure better prices than Asia, where demand remains low.