State of the Energy Market – 26th April 2022

Daily Updates

Tuesday’s (27th April) prices have been dominated by the news that Russia had turned off the gas taps to Poland and Bulgaria for failing to make payments in rubles as per the instructions that Russia had released a few weeks ago. May 22 power prices have been slightly up, whereas gas prices for May 22 have surprisingly dropped by approximately 5%. Further out, most periods are generally showing increases against Monday’s close for both gas and power. Russia continues to put a lot of emphasis on the fact that they have always honoured their contract commitments to their European counterparties. By switching off the taps to Poland and Bulgaria it demonstrates that they mean business regarding payment for gas deliveries to ‘unfriendly countries’ in rubles and the question now is, will they be prepared to do the same with Germany? Poland and Bulgaria have been preparing for such an eventuality, especially Poland, but is Russia prepared to turn down the billions of euros they currently receive from Germany by disconnecting the supply to them as well? UK LNG prices maintain a premium over East Asia for the next two months, which should continue to draw further LNG volumes to the UK, and will add to what is approaching record levels of LNG deliveries for April.


May 22 wholesale gas prices closed at 163.56 pence per therm on Tuesday (26th April), which was a 6% increase on the previous working day.  


Wholesale electricity prices for May 22 closed at £163.68 per MWh, which was a 1.1% increase on the previous day.

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