European gas prices rebounded after falling to their lowest levels in almost 18 months last week as the chances of colder weather at the end of winter rose. Benchmark futures for natural gas in Europe rose as much as 5.4% after falling below 50 euros on Friday, the data showed. At the same time, Germany's electricity prices will also rise in the next month, with an increase of 4.8%.
Temperatures in cities including London and Madrid are likely to drop from unseasonably high levels by the end of the week, with the cold weather likely to last until early March, forecasters predict.
Europe has so far passed most of winter without energy rationing or blackouts, but the looming cold snap is a reminder that there is still a month left of winter.
Gas supplies in Europe are currently ample, with gas flows from Norway picking up after recent outages, and Russian gas flows through pipelines through Ukraine have also increased. But competition with Asia for liquefied natural gas, which is vital to Europe after Russia cut supplies, could intensify.
Traders are also watching for any signs of increased electricity consumption, especially as wind speeds ease from current levels.
