Gas Price Sharply Up Due to Colder Weather Forecast

The European gas price rose sharply on Monday due to forecasts that colder weather will arrive in parts of Europe. As a result, the heating will probably be turned up again, which would boost the gas demand.

On the other hand, mild autumn weather has recently caused the price to fall.

On the leading Amsterdam gas market, the gas price rose by 10 percent on Monday to almost 108 euros per megawatt hour. Last week, the gas price fell by 15 percent. The price is usually well below the peaks of around 350 euros that were reached at the end of August.

According to the American company Maxar Technologies, which carries out satellite measurements, among other things, temperatures in Germany and the north of Europe will drop next weekend. Incidentally, the European Union’s Earth Observation Program Copernicus said there is a high probability that Europe’s winter will be milder than usual.

The production shutdown is also pushing gas prices at the Norwegian Asgard gas and oil field due to technical problems. According to the Norwegian gas company Equinor, there was a fire at a technical installation on Sunday, and production will be down for some time.

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