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Global Commodities: An Inventory Detour

In this episode Greg Shearer and J.P. Morgan’s European natural‑gas analyst Otar Degboadzi discuss how inventory levels are shaping commodity markets. They note that U.S. gas storage is near full capacity (about 2.2 trillion cubic feet), while European gas inventories are critically low—only 34% full EU‑wide and just 24% in Northwest Europe, with Germany at 27% and the Netherlands at 11% of capacity. Otar explains that Europe will need gas prices of roughly €50‑60 per megawatt‑hour in late Q2‑Q3 to spur LNG imports and power‑sector switching to refill storages before winter. The conversation then shifts to metals, highlighting a copper inventory dislocation where the U.S. holds over half of global stocks and a pending Section 232 tariff review could restrict refined copper imports, potentially driving price volatility.