Bloomberg: High gas prices in Europe with the expectation of a wave of cold weather
Natural gas prices rose in European trading, on Tuesday, with the expectation of a wave of cold weather in Europe, which could lead to an increase in demand for heating fuel.
Bloomberg reported that Germany expects an unusually low temperature this week, while a cold wave is expected to reach Britain next week, according to climate data company Maxar Technologies.
It’s also expected that electricity production from wind energy will decline in Britain and Germany during the next week, which will increase the consumption of gas to produce electricity.
This comes at a time when European countries have begun to reconfigure natural gas stocks after the end of the peak consumption period during the winter season, as the percentage of filling warehouses in recent days reached about 57% on average, according to data from the Gas Infrastructure Corporation in Europe.
The price of natural gas futures contracts in the Netherlands, which is the benchmark price for Europe, increased by 4.8% to 43.10 Euros per megawatt-hour for delivery next month.
The price of these contracts has stabilized around this level in recent days.