European Gas Gains as Weather Risks Counter High Reserves
- Demand for heating is rising with first bout of cold weather
- Still, high gas inventories are keeping prices in check
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European natural gas prices rose as plummeting temperatures across the region boost consumption and test fragile energy systems.
Benchmark futures increased as much 4.9% Tuesday. The cold snap in northwest Europe is putting pressure on inventories that have been built up for the winter. Still, reserves remain fuller than normal at about 91%, which together with ample supplies of liquefied natural gas is helping to keep gas prices in check.