Prices ease following news of Trump-Putin peace talks

Gas prices at the NBP plummeted on Thursday following news of Trump-Putin peace talks concerning the war in Ukraine.

Prices eased across curve contracts, with the Summer 25 front-season contract shedding a considerable 10p/therm (0.34p/kWh) when compared to its previous close.

Hopes for a Russia-Ukraine ceasefire in the short to near-term, along with doubts surrounding the renewal of EU storage targets likely triggered a sell-off of risk built up over the past few weeks, diminishing underlying support.

Wednesday’s phone call between Trump and Putin exerted sustained downward pressure at the front end, with later-dated contracts also posting sizeable reductions.

Ukrainian President Volodymyr Zelenskyy and several European leaders voiced disapproval over Ukraine’s exclusion from the conversation, prompting the White House to clarify that Ukraine will be included in potential peace negotiations.

Also on Thursday, EU member states met at a forum in Brussels, focusing on the upcoming renewal of the blocs gas storage mandate. Several member states including Germany, France, Czechia and the Netherlands expressed concerns and called on amendments to the existing rules.

These recommendations will be passed onto the European Commission while it considers an extension of the mandated (90% by November 1st) target.

This morning, gas prices have so far resumed their downward trajectory, wit the Summer 25 front-season contract currently being offered more than 6p/therm (0.2p/kWh) below its previous settlement, although many are yet to trade at time of writing.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Price commentary courtesy of Crown Gas and Power