Hotter-than-normal temperatures across North Asia are draining gas inventories and prompting some spot purchases from importers in Japan and South Korea, contributing to a recent rise in prices. Gas-fired power generation in the Tokyo area on Thursday jumped to the highest level since March. The heat wave is expected to persist for at least another month.

Europe is also hotter than usual, with prices gaining for the week. But the continent appears well-supplied for now and continues its efforts to rebuild fuel inventories ahead of winter. This month, the region saw an increase in pipeline supplies from Norway, Europe’s top gas provider. The country has less seasonal work planned for July, but will ramp up maintenance again next month.

Prices should drop when temperatures return to normal — before rising again by the start of the winter, according to Aldo Spanjer, head of energy strategy at BNP Paribas SA. 

“The moment the heat goes away, I think prices will come off,” he said in an interview. But “we are under-pricing winter risk.”

LNG buying also rose recently in South America as cooler weather in parts of the continent drove up heating demand. A shipment from the US, which was initially headed for the North Atlantic, made a U-turn toward South America last week.