Optimism around peace talks helps reduce prices
Optimism regarding scheduled US-Russia talks contributed to gas prices resuming their downward trajectory on Tuesday.
Market participants awaited the Trump-Putin phone call scheduled for later in the day, which ultimately led to President Putin agreeing to a 30-day partial ceasefire, promising not to target Ukrainian energy infrastructure with immediate effect, though it is subject to approval by the Ukrainian government.
It is hoped that a longer-term, more comprehensive agreement can be reached in the near future amidst increased dialogue and cooperation between the US and Russia.
Meanwhile, a steady stream of LNG deliveries into the wider European market continued to serve as an underlying source of help.
According to the latest shipping signals, up to four vessels could arrive at British terminals over the next seven days. As seen in February, the rate of LNG arrivals is far outpacing the same month last year, with 15 vessels having already arrived in March compared to 9 for the whole month last year.
This morning, natural gas prices have opened in a somewhat bullish mode, with the Summer 25 front-season contract currently being offered approximately 3p/therm (0.10p/kWh) above its previous settlement, as global news developments continue to steer prices in both directions.
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Price commentary courtesy of Crown Gas and Power 