Gas market spooked on Russian flow concerns

Tuesday 17th May 2022

Whilst Annual gas and power have edged up over the past fortnight, there have been interesting downward movements in the short-term market. This has resulted in the UK exporting a large amount of power to the continent, particularly to France where nuclear issues and hydro-electric disruption has resulted in generation short-falls. Large volumes of gas in the UK also saw day-ahead prices hit their lowest levels since September ’20 and again the UK were exporting to mainland Europe actually injecting into storage.

Annuals are much more influenced by the ongoing situation in Ukraine, with steady rises, particularly on the October ’22 curve. We have also seen oil going back above $110 on supply uncertainty. Rising energy prices are tempered to some extent by the widespread news of double-digit inflation and a sharp economic slowdown.