European natural gas prices have slightly increased, as cold weather tests supply and demand balance.

It is observed that European natural gas futures prices have seen a slight increase, with traders weighing the risks of sufficient supply and the possibility of increased demand due to cold weather. The benchmark futures price rose by up to 0.9% on Wednesday, continuing the slight gains from the previous trading day. However, contract prices remain around 32 euros per megawatt hour, and have been struggling to break out of this narrow trading range since early October. As of the time of writing, the European natural gas benchmark in the Netherlands saw a 0.4% increase in near-month futures prices, reaching 31.62 euros per megawatt hour. Recently, the natural gas transportation volume in Europe has slowed down, and the pipeline transmission volume from Norway, the region's largest source of supply, has decreased due to maintenance at some gas fields. With temperatures in the Northwest European region expected to drop after experiencing mild weather, concerns about short-term supply have arisen, testing the region's supply-demand balance. Despite abnormally low inventory levels earlier this year, Europe has successfully accumulated sufficient natural gas reserves during the summer, with the filling rate of large storage facilities in the region approaching 83%. However, the early cold spell of the heating season has led some countries to tap into their natural gas reserves. The market remains sensitive to any unexpected or prolonged interruptions in global natural gas flow, as well as increased competition for goods. With Ukraine having about 60% of its natural gas capacity destroyed, the country will import more natural gas from the EU this winter.