Following a lacklustre week in the energy markets, yesterday saw new concerns being added to the market with prices pushing up almost 10% on the near term. Firstly, news broke of another series of Russian attacks on Ukrainian energy infrastructure. The gas market was on edge with a Russian attack on Naftogaz underground gas storage facilities where two facilities were damaged but as per Naftogaz statement, underground storages sites continue to function. Later in the afternoon the EU announced new laws to provide its members with the tools to restrict the imports of Russian and Belarusian gas and LNG. This law needs to be formally adopted by the EU council before becoming binding however this is expected to be just a formality. Finally further upside came from a sharp drop in Feed gas at Freeport LNG facility in Texas following a trip on train 3. The United States is the biggest LNG exporter to Europe. The front season in the UK gas market, Winter-24 is now at levels not seen since December as increasing geopolitical risks drives the forward curve.
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