Gas prices are rising in Europe and more are on the way

European natural gas futures rose from a 20-month low, with traders assessing the impact of slowing liquefied natural gas flows on the region’s supply balance. LNG imports to major ports in Northwest Europe and Italy have fallen slightly in December so far compared to last month. While mild weather has helped reduce heating demand, Europe still needs to attract stable fuel flows, which have kept prices in a relatively tight range this week. Also read: Europe reaches agreement to end Russian gas imports by 2027. RBC analysts Adnan Dahani, Piraj Burkhtaria and Victoria McCulloch said in a note that “Europe will need to continue purchasing liquefied natural gas this winter,” especially in light of the decline in its reserves. Gas price expectations in Europe Analysts pointed out that these factors “indicate the possibility of a slight increase in prices” in the first quarter, although general estimates still indicate a decrease due to the increase in global supplies. Temperatures are expected to remain above normal for the rest of the month, while some forecasts for January call for cooler conditions. You may be interested in: The price of gas in Europe falls amid hopes of an end to the war in Ukraine and a rise in imports. Gas storage sites are less than 72% filled, compared with a five-year seasonal average of 81%, with the rate of withdrawals slowing in recent days. Dutch futures for delivery next month, the benchmark for gas prices in Europe, rose 1.3% to 26.96 euros per megawatt hour at 08:38 in Amsterdam. During the previous session, contracts recorded their lowest levels since April 2024.