Professional Energy Purchasing

Market Update

Gas and power prices have jumped upwards today, driven up by the recent conflict between Russia and Ukraine. An additional premium has been added on prices by the market, in case gas supplies from Russia to Europe are affected.

The UK gas system opened under supplied this morning as gas supplies from Norway have increased to mainland Europe at the expense of the UK. This appears to be a reaction in case gas supplies from Russia are reduced. This added risk on longer dated contract prices for both gas and power.

Improved gas infrastructure across Europe means that Europe are less reliant on gas from Russia via Ukraine. However, there is a risk that the conflict between Russia and Western Europe may escalate which is providing some concern.

Brent crude futures have also risen sharply today, by just over $3/bbl and are now trading at $112/bbl, as a result of the ongoing conflict.

Energy Efficiency & Procurement Consultants