Natural gas futures rose in European trading on Wednesday due to lower-than-average air temperatures and reduced supplies of gas from Norway.
Cooler-than-expected temperatures coincided with additional maintenance for gas facilities in Norway and the possibility of increased competition with China for energy supplies, pushing up gas prices, Bloomberg news agency said.
And China has lifted many of its tough travel restrictions as part of its zero Corona virus infection policy, prompting dealers in energy markets to expect a recovery in the Chinese economy and increased demand for liquefied natural gas.
The underlying futures contract rose 8.6% and closed 7.8% on the day.
It comes at a time when European homes and workplaces have started heating systems and temperatures are dropping below freezing in many European regions, according to weather forecasts.
In the Netherlands, the base price for natural gas has risen to €149.25 per MWh for delivery next month.
Electricity prices for next month’s delivery also rose in Germany and France due to falling temperatures and higher natural gas prices, pushing up the cost of running power plants.
In the UK, next day gas prices also rose 12% due to cooler temperatures.