European gas prices edge higher as cooler forecasts offset storage injection
European and British wholesale natural gas prices were largely muted on Wednesday, edging slightly higher as updated weather models predicting cooler temperatures across Northwestern Europe countered ongoing steady additions to continental storage reserves. The benchmark rose 1.5% to trade at 76.80 euros per megawatt-hour (MWh), maintaining its footing near multi-week highs. In Great Britain, the…
European and British wholesale natural gas prices saw a slight increase on Wednesday, as updated weather models forecasting cooler temperatures in Northwestern Europe counteracted the steady injection of gas into storage reserves. The benchmark rose by 1.5% to reach 76.80 euros per megawatt-hour (MWh), hovering near its multi-week peak. In the United Kingdom, the price climbed by 0.5% to stand at 189.03 pence per therm.
The modest price rise occurred as institutional investors digested revised early-winter temperature forecasts, which indicated a potential earlier onset of heating demand across major industrial and residential areas. Meteorological models for Northwestern Europe were adjusted downward for the coming weeks, suggesting a more rapid start to the heating season. This weather-related demand surge prompted a modest increase in heating-season hedging activities, marking a shift from the minor lulls observed earlier in the week.
Despite these weather-driven price movements, European Union gas storage levels continued their gradual pre-winter buildup. Currently, storage caverns hold 73% capacity. Although inventories have improved over recent weeks, they remain notably below the levels seen at the same time last year. This discrepancy leaves the market susceptible to sudden spikes in demand.
Traders emphasize that European natural gas prices are still influenced by broader structural and geopolitical factors. Risks associated with security in the Persian Gulf shipping routes and ongoing drone attacks on regional energy infrastructure continue to introduce premium costs to seaborne Liquefied Natural Gas (LNG) deliveries.
Recent revisions by investment banks, such as UBS, have pushed fourth-quarter Dutch TTF price forecasts upward to €75/MWh, driven by sluggish LNG supply recovery and the planned phase-out of Russian pipeline gas. Experts anticipate that a sustained cold spell could revive upward momentum in European gas markets.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
