Prices steady in anticipation of renewed Ukraine peace talks
Gas prices steadied at the NBP on Friday as markets weighed the promise of renewed talks in Saudi Arabia against depleted European storage levels.
Market participants looked ahead to US talks with both Ukraine and Russia on Sunday night and Monday morning, respectively. The talks aim to build on diplomatic progress made between the US and Ukraine in Jeddah on 11th March and the subsequent phone call between President Trump and President Putin last week, both of which were seen as constructive.
This latest round of negotiations comes just days after a massive explosion and fire at the Sudzha gas station in Russia’s Kursk region, a key asset for Russian gas flows via Ukraine that has been inactive since the end of last year, highlighting the ongoing risks to European gas infrastructure.
US-Ukraine talks last night were described as ‘focused and productive’ by Ukrainian Defence Minister Rustem Umerov.
Contracts further out posted modest gains amid underlying concerns regarding EU gas storage levels.
According to data from Gas Infrastructure Europe, total EU reserves stand at 33.9% full, down more than 25 percentage points from the same date last year (59.17%), indicating that the bloc will need to work significantly harder this year to meet mandatory refilling targets as things currently stand.
This morning, gas prices have opened at a slight discount when compared to Fridays close, with the Summer 25 front-season contract currently being offered circa 1.5p/therm (0.05p/kWh) lower, at time of writing.
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Price commentary courtesy of Crown Gas and Power 