• Gas markets spike and sit close to the 300p/Therm mark
• European stock levels likely to meet winter demand but uncertainty surrounds rebuilding for winter 22
• Oil prices sent over the $100 mark amid the Russian attacks on Ukraine

Yesterday’s Russian invasion on Ukraine led to gas markets to sit comfortably above 200p/Therm, but the latest attacks today have seen significant spikes in the market with Summer and Winter 22 index’s close to 300p/Therm. Fears of supply disruption will be high on the agenda but Russian flows into Europe have not been impacted today but we are in the early stages of the attacks.

European stock levels at the moment will be able to cope with winter demand but with the likelihood of Nord-Stream 2 being off-line in 2022 high, rebuilding for the winter period will be challenging. Wind generation has been strong recently but is likely to drop off tomorrow and remain below seasonal norms until the beginning of March which will add further upside into markets. Norwegian flows remain stable along with LNG imports coming into the UK and the continent.

Oil markets followed today’s trend amid the escalation of the Russia/Ukraine conflict as prices spiked and went above the $100/Bbl mark. This is mainly down to fears of global supply disruption, but it is yet unknown if this is to be the case