European natural gas prices surged as freezing temperatures spurred demand

Natural gas prices in Europe soared this week as a cold snap across the north half of the continent boosted demand for the fuel. 

Benchmark futures surged another 5.9 %. Their value is set to reach 158 euros per megawatt hour by 10:04 a.m. in Amsterdam. This level is the highest since mid-October. 

Experts predict that temperatures in the Eurozone are going to plunge below average next month. In addition, it is the heating season that started later in 2022. Thus, a sharp cold snap in Europe coincided with technical maintenance of facilities in Norway. This may contribute to increased competition with China for natural gas supplies. Currently, Beijing is partially lifting restrictions aimed at curbing the rise of COVID-19. Earlier, these restrictions led to lower demand for the fuel. 

Europe has been importing record amounts of liquefied natural gas so far, as declining supplies from Russia are exacerbating the energy crisis in the region.