Europe's Gas Prices Rise with Heatwave: What to Expect in the Coming Weeks?

The price of natural gas in Europe has surged by around 5% in response to the anticipated heatwave in Northwest Europe and Italy, which is expected to boost electricity and gas demand. The price increase is also attributed to concerns over supply security due to the prolonged maintenance work at Norway's Nyhamna processing plant and the Troll gas field. According to Gas Infrastructure Europe (GIE), the filling level of Europe's underground natural gas storage facilities is currently at 43.1%, which is lower than the 51.4% level recorded during the same period last year. We analyze the impact of the heatwave on Europe's energy markets and what to expect in the coming weeks.