Highlights
- Demand in southern Europe spiked during the summer because of a heatwave
- European imports from Russia surged in July and further rises are expected in August
- Ukraine is highly unlikely to reach its storage targets
- Regional hub prices are under pressure - the NBP day-ahead is around 40 p/th
Economic overview
Economic and political trouble continues to plague Greece, but the euro – while still weak – has recovered from the lows seen in July and early August.
Athens is negotiating the final elements of its massive bailout package. While talks have been ongoing, the Greek stock market has continued to suffer significant losses. Greece must pay back €3.2 billion ($3.5 billion) to the European Central Bank (ECB) on 20 August. The funds for this payment will come from a three-year deal worth €86 billion. Although its immediate future in the eurozone is secure, challenges for the Greek economy remain.
Europe - annual GDP growth by quarter
| Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 2015 | |
| France | -0.2% | 0.2% | 0.1% | 0.9% | 1.0% |
| Germany | 1.4% | 1.2% | 1.5% | 1.1% | 1.6% |
| Italy | -0.3% | -0.5% | -0.4% | 0.1% | 0.5% |
| Netherlands | 1.1% | 1.1% | 1.5% | 2.6% | 2.0% |
| Spain | 1.2% | 1.6% | 2.0% | 2.7% | 3.1% |
| UK | 3.0% | 3.0% | 3.4% | 2.9% | 2.6% |
| Greece | 0.2% | 1.5% | 1.4% | 0.5% | 1.4% |
Despite high levels of unemployment and government debt, Spain’s economy grew by a relatively strong 3.1% in Q2. High levels of tourism and the government’s labour and banking reforms – along with low oil prices and a financial stimulus from the ECB – have supported the Spanish economy. However, unemployment is around 22% and there are still major obstacles to growth this year and next. Gas demand is rising, however, largely driven by the especially hot weather in July.