New of partial ceasefire helps reduce wholesale prices

News of a US-brokered partial ceasefire between Russia and Ukraine triggered a late afternoon reduction in gas prices on Tuesday.

Both the front-month and front-season contracts briefly traded below the key psychological level of 100p/therm at the market’s close.

The most significant moves were observed across the near-curve, where it reduced by just over 3p/therm (0.10p/kWh) compared to the previous session.

Following separate talks between US and Russian officials, and Ukrainian officials on Sunday and Monday respectively, a partial ceasefire covering naval operations in the Black Sea and energy infrastructure has been agreed by both sides.

Although conflict in other areas is likely to continue, European gas hubs have undoubtedly breathed a sigh of relief as both sides have committed to avoiding energy infrastructure.

This commitment comes after a recent escalation in targeted strikes on major production and transit facilities on both Russian and Ukrainian soil.

The NBP appears to have retained yesterday’s losses so far this morning, with the Summer 25 front-season still trading close to 100p/therm, at time of writing.

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Price commentary courtesy of Crown Gas and Power