Indigo Swan Energy Report (6)
High Gas and Electricity Wholesale costs.
Tensions with Russia continue to create price volatility.
EU Gas Storage levels are 26% full compared to 31% last year.
As of the 5th of April, Gas and Electricity Year Ahead Wholesale costs were higher, when compared to last month’s report. The Oil price remains high at $107 per barrel, from $101, although we did see it peak at almost $130.
The conflict in Ukraine continues to dominate price direction for Oil, Gas and Electricity. News that the US, UK and EU
were all banning or taking measures to restrict imports of Russian fuels, caused a considerable increase in prices. The concern was that Russia may respond by cutting off Gas supplies to Europe, which did not materialise. Peace talks did provide some optimism, with Russian troops pulling back from Kyiv, but this appears to be a strategic move to focus resources in other regions. There is evidence that Russian forces have committed war crimes, which may persuade the EU to ban Coal imports. President Putin has also stated that “unfriendly” countries should pay for Gas in roubles, which most have rejected. This could create supply issues.
The EU has set Gas Storage targets, with the intention of ensuring there are sufficient supplies for this coming winter. They are currently 26% full compared to 31% last year.
The Met Office forecast suggests below seasonal norm temperatures and slight winds at the start of April, with the potential for more wind and milder temperatures later in the month.