Gas prices surge on cold forecasts

Gas prices surge on cold forecasts

On Oct 7 european natural gas jumped to a six-week high, extending a sharp rally as colder weather forecasts and weaker renewable output boosted heating demand expectations. Temperatures in France and Germany are set to fall about 2°C below seasonal norms from mid-October.
The market also reacted to Russia’s largest missile strikes on Ukraine’s gas infrastructure since the war began, heightening concerns over potential supply disruptions. Despite the risks, EU storage remains robust at 82.8% of capacity, with Italy at 93%, France at 92%, and Germany at 76.3%.
In the UK, gas futures climbed also as the Met Office warned of a sharp temperature drop ahead, likely lifting heating demand. Analysts noted that if damage to Ukrainian facilities proves significant, Europe may need to increase pipeline and LNG imports to stabilize supply.