Obscured reports of shelling close to critical Russian export infrastructure fuelled bullish sentiment across the wider energy complex, with key natural gas contracts being driven to the highest levels seen so far this year.

Top officials in Ukraine such as President Zelenskiy and senior adviser Mykhailo Podolyak indicated on Thursday that the ongoing incursion into Russia’s Kursk Oblast is part of a sanctioned military operation. Unconfirmed reports from Russian media suggest that Ukrainian forces have seized control of the Sudzha gas station which serves as a vital nomination point for much of the last remaining Russian flows into Europe. Several EU countries such as Austria and Slovakia are still very much dependent on Russian gas flowed via Ukraine and if the Sudzha station is damaged by the ongoing shelling, missile and artillery fire in the surrounding areas it could invigorate bullish sentiment at European gas hubs.