Europe gas and power markets short-term outlook Q1 2023

European gas markets are having a safer start for 2023. A warm winter and price-driven demand response lead Europe to end winter with almost 50% storage levels, well above the 5-year average of 33%. Despite the loss of Russian gas supply, due to the reduced need to fill storage, Europe is in a good position to achieve the 90% target legislated by the EU for the 1st of November 2023. Still, the global balance remains relatively tight. And pricing will require to stay in the higher range of the coal-to-gas switching in Europe and above oil parity.