European natural gas prices have surged beyond €28 per megawatt-hour, marking the highest point in approximately a month. This increase is attributed to an uptick in heating demand owing to colder weather conditions prevailing across the region. Much of Europe is currently under the grip of Arctic weather, which is anticipated to continue into the following week, thereby sustaining consumption levels, although a milder weather trend might surface by mid-January. In northwest Europe, average temperatures are projected to rise modestly from about 1.6°C to 2.5°C, yet they will persist below seasonal averages. Concurrently, EU gas storage facilities were most recently reported to hold 63.7% capacity, contrasting with 74% at the equivalent time last year. Despite this short-term price strength, prices remain significantly lower than previous highs, declining around 45% from the previous year owing to robust supply from Norway and unprecedented US LNG exports. The United States is on track to export approximately 14.9 billion cubic feet per day of LNG this year, an increase of 25% compared to 2024 levels, as indicated by the EIA’s latest Short-Term Energy Outlook.