Gas prices are going up on Tuesday due to colder-than-normal weather in northwestern Europe. As a result, the stocks built up for the winter are being used more often.
In the coming weeks, Europe also seems burdened by colder temperatures from the east. As a result, on the leading Amsterdam gas exchange, the gas price rose by about 3 percent to 138.50 euros per megawatt hour.
For the time being, Europe has had a relatively mild winter. The increased demand for heat is now hitting gas supplies. The fact that gas prices are still not rising much faster has everything to do with the buffers. The gas storages are still 91 percent full, higher than usual around this time of year.
Meanwhile, European Union countries are discussing ways to ease market volatility after energy bills rose to record highs earlier this year. Several countries are calling for a stricter limitation of gas costs. EU energy ministers will discuss the issue next week.
Supply is expected to remain tight, especially for the winter of 2023-2024. As a result, higher prices will also continue, according to a report from the Oxford Institute for Energy Studies. If a price cap makes it more difficult to balance supply and demand, it can worsen the situation.