Test fragile energy systems and boost demand.
Benchmark futures rose as high as 4.3pc with temperatures set to drop below freezing between Britain and the Nordics this week. This will boost energy demand and test the region’s resilience to cold winters.
According to the Met Office Monday, temperatures could drop to -10 Celsius in the UK due to a cold Arctic maritime airmass. There may also be snow and wintry showers to the south.
Natural gas prices have surged in #Europe as the continent prepares for a cold snap. Benchmark futures increased as much as 4.3%, with temperatures expected to plummet below freezing from Britain to the Nordics this week.
— Share_Talk ™ (@Share_Talk) December 6, 2022
It also issued a yellow warning about snow in northern Scotland on Wednesday, with some roads as well as railways likely being affected.
According to Maxar Technologies, below-average temperatures can also be expected in continental Europe. Stockholm will experience temperatures that are 7.5 Celsius lower than normal on Thursday.
As households turn up the heat, the first cold spell of the season will be a major threat to the region’s fragile energy system.
Europe’s gas storage facilities could become depleted if there is a prolonged period of cold.
