As summer approaches, Europe’s natural gas inventories have dropped to record lows, while U.S. crude oil stocks have climbed to a 21-month high due to increased imports. At the same time, China’s steel sector is facing overcapacity, and Europe’s feed market is slowing amid rising costs.

Europe is entering the season with historically low gas storage and severe supply disruptions following Qatar’s gas fields being attacked. QatarEnergy has declared force majeure, reducing exports and taking about 17% of capacity offline. EU gas storage stood at 28.48% as of March 21, below previous years, while member states face a 90% target that may be adjusted.

In the United States, crude inventories rose by 6.16 million barrels to 449.26 million barrels, supported by higher imports and refining margins. Meanwhile, China’s hot-rolled market faces growing pressure from expanding capacity, with the market expected to remain challenging unless coordinated production cuts are implemented.