European Gas Prices Rise Amid Decline in Norwegian Output
Europe's gas prices have recently increased slightly due to a decrease in Norwegian gas production despite mild weather conditions in the region. This rise comes amid ongoing geopolitical tensions and seasonal energy demand.
Impact of Weather and Geopolitics
Although the weather has been milder than usual—characterized by mild, rainy, and cold conditions—Norwegian gas output has declined. Typically, Europe faces higher energy demand as the cold winter months approach, pushing up prices. But in 2025, the combination of softer weather and reduced supply from Norway has contributed to higher gas prices.
Regional Price Variations and Causes
- The Netherlands and Britain have experienced increases in wholesale gas prices.
- Norway’s output drop is mainly due to scheduled maintenance on its gas infrastructure.
LSEG Data & Analytics stated, "The benchmark Dutch front-month contract was up 0.23 euros at 31.73 euros per megawatt (MWh) at $10.80/mmBtu."
Broader Energy Market Context
The European energy market remains affected by the war in Ukraine, influencing energy prices across multiple sectors. European leaders continue to consider strategies aimed at pressuring Vladimir Putin to end the conflict, which adds uncertainty to global energy supplies.
Conclusion
The recent uptick in European gas prices reflects the interplay of reduced Norwegian supply and the resilience of demand despite milder weather, set against a backdrop of geopolitical strain.
Author's summary: European gas prices rose slightly due to lowered Norwegian supply amid mild weather and geopolitical tensions, affecting markets especially in the Netherlands and Britain.