Gas and power markets have continued to ease over the last fortnight with both Annuals and Short-term coming off. This is in spite of colder weather and decreased renewable output increasing gas demand. The impact of French industrial action on nuclear output has been less significant in recent weeks, although this does remain a concern for later in the year. Germany has also switched off its last nuclear stations, decreasing baseload and increasing imports. Gas storage remains key, and with levels already topping up for summer replenishment (storage in the EU is at 60%), so gas pricing is relatively benign, in spite of the start of the North Sea maintenance season. In a wider energy context, crude oil and carbon are off, whilst coal prices are up on tightening Russian exports.

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