Heating Season Postponed as Warm Weather Sweeps Across Europe

(Bloomberg) -- A spell of warm weather across northern Europe is staving off the worst of the natural gas crisis for now at a time when clocks go back and cold weather normally starts to bite.

Much of Germany basked in temperatures in the low to mid 20s Celsius Saturday, while the unseasonably warm temperatures sent sunbathers to the beach in France and Spain. The UK wasn’t far behind with a high of 22.9C (73F) recorded in London.

Short-term European gas prices have fallen more than 40% this month as the unseasonably mild weather curbs demand for heating, allowing utilities to keep storage sites full to the brim. Although they remain far higher than historical levels, lower prices will ease pressure on consumers, businesses and governments, all of which have been grappling with the impact of the energy crisis since Russian invaded Ukraine in February.

The current wave of unseasonable weather may give policy makers across the continent some breathing space, but its unpredictability will keep the market on edge at what is just the beginning of the colder season. 

Meteo France, France’s national weather service, is forecasting that warmer-than-normal temperatures will continue through December, while the UK Meteorological Office is set to update its seasonal winter outlook on Monday.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.