Unseasonal European temperature spike drives gas prices higher

Europe braces for unseasonably warm and humid weather this week, as a hot air mass advances from North Africa, driving up cooling demand. Bloomberg reports this exerted upward pressure on natural gas prices.

The heat has already reached Spain. On Monday, the air temperature in some parts of the country rose to 40 degrees Celsius. Electricity prices are close to a three-month-high, according to OMIE.

The increasing intensity and frequency of heatwaves in Europe are negatively impacting the region's energy systems, particularly in Italy and Spain. In these countries, air conditioning is widely used during the hottest days. This will play a significant role in determining gas storage levels ahead of winter, Bloomberg explains.

Power demand for cooling this week is expected to exceed the norm across most of the continent, reports Atmospheric G2. Meanwhile, the heat is likely to spread north over the week, potentially setting this year's temperature records in the UK, France, Germany, and Italy.