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Energy Crisis

The Rollercoaster Energy Market Is Now at The Mercy of Weather

Traders are watching for a cold snap that could see prices break new records at a difficult time for Europe.

A post marking the Nord Stream 2 gas pipeline in Ust-Luga, Russia.

A post marking the Nord Stream 2 gas pipeline in Ust-Luga, Russia.

Photographer: Andrey Rudakov/Bloomberg

Everyone may be back to watching the daily number of coronavirus cases as the omicron variant spreads through Europe, but the energy market is focusing on a more traditional gauge of worry: the temperature.

Prices soared to new records this week because of the impact of unexpected nuclear outages in France and worryingly low stockpiles across the continent. On Friday, natural gas prices plunged as Russia decided to supply the market at the 11th hour, yet they are still at dizzyingly high levels.