State of the Energy Market – 6th April 2022

Daily Updates

The energy prices have flipped and recent trades have shown a small increase yesterday (6th April) against Tuesday’ close. One of the Norwegian fields has reported a problem, which will possibly lead to drop of incoming gas volumes for today, however Russian gas imports into Europe remain healthy but there is some concern around how Europe will compensate its energy demand given the new additional sanctions against Russian coal.

Gas

Wholesale gas prices for May 22 fell slightly on Tuesday (5th April), closing at 242.24 pence per therm, a 0.7% drop against Monday’s close.  Prices had initially shot up following the news that the EU were looking at additional sanctions against Russia as punishment for the reported stories coming out of Bucha. Prices started to soften in the afternoon due to increases in upcoming wind forecasts. It also became clear that the additional sanctions would only apply to Russian coal, while sanctions against Russian gas imports are yet to apply, but they are a little closer as Germany and Italy, who had both previously been anti gas sanctions are now warming to the idea..

Electricity

Wholesale power prices for May 22 also fell slightly on Tuesday, closing at £211.48 per MWh (see below), which was 1.1% down against Monday’s close.

In other energy related news:

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