European natural gas prices rise as cold weather boosts demand

European natural gas prices rose sharply on Monday, driven by forecasts of colder weather in parts of the continent, boosting demand for the fuel during the winter heating season.

Dutch gas futures, the European benchmark for gas prices, rose 2.3% to 48.90 euros per megawatt-hour on the Amsterdam Exchange, while equivalent contracts in the United Kingdom saw a similar rise.

European gas stockpiles have fallen at a faster pace than usual, with the filling rate at about 85% compared with 95% in the same period last year, according to Bloomberg data.

The European Union aims to boost stockpiles to ensure demand is met next year.