Benchmark gas prices are trading at the highest level in almost four months and many energy suppliers have withdrawn their pricing until there is some stability in the marketplace.
Europe is facing the most severe energy crisis in decades. Russia, which is the biggest supplier for Europe, has been curbing shipments amid growing tensions over the war in Ukraine. There are growing concerns that Russia may not resume flowing gas into Europe after the planned maintenance to the Natural Gas Interconnector Nord Stream 1 has occurred this month. Some reports show that continental gas storage levels are only at 40% and not closing on the mandated 80%. This time of year is usually when countries build their storage for winter, however, the low numbers point to Europe being undersupplied as we enter the colder months and demand intensifying in order to try and meet the mandated storage levels.Prices are not at the peak levels seen at the end of 2021 and in March this year when Russia first invaded Ukraine, but the market is highly volatile and pricing could move that way as we are seeing no relief until Summer 2024.
This pricing report will focus on the energy element of a bill to help you keep track and understand the wholesale energy market and the factors affecting the price of your contracts.
Download the full report here (pdf) – 8th July 2022
Includes:
- Market factors
- Energy news: Russian Flows to Europe Cause Concerns For Winter
- Market report: Gas, power, crude and brent oil
