Gas prices to spike as temperatures fall…
Heating demand for Europe has been capped due to the mild start to the cold season, but by the end of the week temperatures are set to fall below the norm for the UK and Western Europe.
As Britain shivers, these colder temperatures will cause the demand for domestic gas heating to surge by 30% and subsequently lift gas prices across regional markets. The UK’s Met Office has announced “Colder weather than of late will spread across the UK over the weekend, bringing overnight frost and temperatures down below normal for the time of year”.
As cited by Utility Week, next week’s gas delivery has traded over 5% higher at 38.00 pence per therm than this week’s value.