Europe Gas Prices Rise as French Strikes and Cold Weather Linger

European natural gas prices surged as strikes in France continue amid a looming cold snap across much of the continent.

(Bloomberg) — European natural gas prices surged as strikes in France continue amid a looming cold snap across much of the continent.

Benchmark Dutch futures advanced as much as 6.3%. The contract has risen about 9% so far this week.

The region has been slow to shake off winter weather while facing disruptions in one of its major economies. Meanwhile, officials are warning that the recent supply squeeze may not yet be over as the critical period for replenishing stockpiles begins — this time without significant pipeline flows from Russia.

Read: Next Chapter in Europe’s Energy Crisis — Summer Risks for Gas

Strikes at three French liquefied natural gas terminals operated by Elengy SA remain in place until Thursday. Electricite de France SA also continues to experience issues with its nuclear reactors, with only 57% of capacity available, according to Bloomberg calculations.

Next week, the region will see another cold spell even as the official heating season draws to a close after a relatively mild winter. The prolonged use of gas for heating adds to pressure on supplies.

Still, storage levels remain high for the period, with net injections seen over recent weeks. Inventories are about 56% full on average, data from Gas Infrastructure Europe show.

Benchmark Dutch front-month futures traded 5.1% higher at €44.95 per megawatt-hour by 9:37 a.m. in Amsterdam. The UK equivalent rose 4.8%.

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