Natural gas is set to record its third weekly gain this year

European gas prices have surged for the third consecutive day, as western parts of the region are bracing for icy weather next week.

This could lead to a drop in temperature across the entire region, resulting in a potential spike in demand for natural gas over the next couple of weeks.

Paris is expected to experience temperatures more than 5 degrees Celsius below the seasonal average on Monday and Tuesday, according to Maxar.

Natural gas is set to record its third weekly gain this year after mild weather in the past weeks kept prices in check. However, inventories in Europe remain above usual levels for this time of the year, at 63% full.

The expected cold snap at the end of the heating season could increase pressure on storage and potentially require higher injections during the summer season.

Despite the weekly gain, gas prices are still down over 30% from last year’s record levels, which impacted industrial demand. Front-month gas futures have risen by 2.8% to €52.20 per megawatt-hour, on track for a weekly gain of more than 5%.

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