Germany has announced a higher-than-expected increase in the German storage fee from 1 July, even though the levy is expected to be scrapped at the start of 2025. 

The announced short-term rise combined with Austria’s OMV warnings about a possible gas supply curtailment amid a court case ruling lifted European gas prices in the second half of May. 

The almost simultaneous news triggered volatility across hubs as markets remain on edge over the regional supply outlook as the Russian gas transit agreement with Ukraine ends on 1 January 2025. 

ICIS models show that even in a scenario where flows were fully stopped this winter, European storage facilities should remain at levels that would be higher than the long-term average.  

Nevertheless, markets remain sensitive to a number of risks described in this interview by Aura Sabadus with ICIS reporters Irina Breilean, Rob Dalton, Tatjana Jovanovic and Amun Govil-Lie.