High European natural gas prices are expected to reduce demand and leave the continent’s storage inventories in line with historical averages at winter’s end if Russia doesn’t cut supplies further and record LNG imports continue, according to Wood Mackenzie. 

Russian Gas to Europe

Prices have dropped significantly since last week, when they hit $100/MMBtu, but they remain elevated as the risk of further supply disruptions continues. In a report issued Thursday, Wood Mackenzie’s 3Q2022 European gas outlook anticipates high energy costs cutting gas demand by 7% below the five-year average through March. 

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While that’s below the European Union’s (EU)...