Prices lift as US renews pressure on EU to stop using Russian gas

NBP gas prices lifted into the weekly close on Friday amid renewed US pressure for tariffs.

Finance ministers from the Group of Seven held a call to discuss further sanctions on Russia and potential tariffs targeting countries deemed to be “enabling” its war in Ukraine.

A sharper US focus on EU energy imports may have contributed to gains, as it clouds the longer-term regional supply outlook.

Just days earlier, on Wednesday, the EU’s Energy Commissioner rejected a US request to accelerate the bloc’s phase-out of Russian fossil fuels.

Reaffirmation of the EU’s 1st January 2028 deadline was quickly followed by a statement from the US Energy Secretary suggesting that the EU could complete the phase-out within six to twelve months.

UK power prices moved higher in tandem with bullishness across the wider energy complex.

However, upward momentum was tempered by consistently high renewable generation, particularly from wind, which acted as a price ceiling. This limited gains on seasonal power contracts when compared to gas counterparts.

Strong wind speeds were recorded over the weekend and will continue to be a key area of focus for market participants heading into week 38.

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Price commentary courtesy of Crown Gas and Power