Little price movement as markets wait for Russian response to Ukrainian invasion

The NBP advanced in range-bound fashion on Thursday, with gas prices continuing to fluctuate within a narrow range.

The majority of contracts posted modest gains of less than 1p/therm (0.03p/kWh) when compared to their previous close as European gas hubs paused to assess developments in Ukraine and the Middle East.

The ongoing Ukrainian incursion into Russian territory remains a source of apprehension for energy markets.

The last remaining Russian flows into the European Union pass via the occupied Sudzha gas station and the possibility of a Russian counterattack bringing active fighting back to the area could once again spook gas markets. As of yesterday, Ukraine now claims control of approximately 1,150 sq km of Russian territory including full control over much of the wider Sudzhansky District- of which Sudzha itself is the administrative centre.

In other news, ceasefire talks between Israel and the US began in the Qatari capital Doha yesterday to try and broker a peace settlement between Israel and the Hamas administration in Gaza.

There is greater emphasis on the importance and urgency of this round of talks due to the immediate threat of retaliation from Iran for the alleged assassination of Hamas political leader Ismail Han iyeh last month.

This morning, although gas prices had initially opened at a slight premium when compared to yesterdays close, most are now being offered slightly below their previous settlement at time of writing.

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Price commentary courtesy of Crown Gas and Power