The economic storm ahead is losing some of its power

When Russia invaded Ukraine in February, German protesters lined the streets holding placards saying ‘Better a cold shower than Putin’s gas’. Their resolve was soon to be tested: energy costs surged and Berlin’s longstanding policy of relying on Russian gas started to cost the country dear. Germany set itself the hugely ambitious target of having its gas stores 95 per cent full by November, a policy that remained even after Moscow turned off the Nord Stream pipeline. It seemed a near-impossible target.

But this target has now been met ahead of schedule. German gas usage is down by about a third after major changes to industry. With the panic over, the price of commercial gas contracts – in Germany and Britain – has now fallen to levels last seen in the spring. Gas futures are trading at about the same level as before the Ukraine war, a time when it was assumed that Russian gas would keep flowing for ever.