By Peter McMullan
15th Feb 2022
Unfortunately, the markets remain very volatile this week. Diplomatic efforts to resolve Russia-Ukraine tensions continue, with Ukraine seeking a meeting in the next 48 hours to clarify Russia’s intensions. Currently Russia has around 100,000 troops on the Ukrainian boarder but maintains that it does not plan to invade Ukraine, despite the large-scale military drills with Belarus.
This all starts from Russia being unhappy over the West’s unwillingness to bar Ukraine’s future entry to NATO. Consequently, if Russia was to invade Ukraine it would inevitably lead to gas export sanctions and the ban on the use of the NordStream2 pipeline.
Prices are currently being kept in check by the steady stream of LNG (Liquified Natural Gas) cargo shipments into europe. Japan has also agreed to divert unallocated volume to europe to make up any short fall. The weather has also been unseasonably warm which has had a positive effect on european storage levels.
Due to the political tensions which are ongoing, we are unlikely to see any price drops in the near future. Members with contracts up in the next 3 months need to be vigilant and ensure they do not fall onto out of contract rates which are incredibly high right now.
CPC’s sole Utilities Supplies and Services framework provider Dukefield Energy, are here to help and can advise customers on the best course of action. There are a number of ways to manage the risk of the current high prices but customers need to contact Dukefield as soon as possible so they have more time to work out the best available options.
CPC and Dukefield Energy are also inviting you to join us for another upcoming online energy market webinar on Thursday 24th February at 1.00pm. This webinar will provide you with a current market update in relation to commercial energy supply within the UK.
We will be sharing an overview of the market and the factors impacting the current soaring energy prices and what you and your institutions can do to minimise risk. There will also be an open Q&A session and attendees are encouraged to ask questions and participate in this informative event. To register for this event, please click here.
If you need any help and advice at all, please feel free to contact the team at Dukefield Energy on: 03454022461 or at [email protected].