• Russia considering cutting off gas via the Nord Stream 1 pipeline
• The EU look to reduce the reliance on Russian gas by 80%
• Europe unlikely to carry out an embargo on Russian oil exports for now

Despite gas markets showing losses from the close of play yesterday, the general outlook remains bullish as the war in Ukraine continues to escalate. Fresh concerns surrounding interruptions to Russian gas flows coming into Europe gathered momentum as Russia stated that they could cut off the supply via the Nord Stream 1 pipeline.

This is in response to Germany halting the progress of the Nord Stream 2 pipeline in light of Russia invading Ukraine. The EU are looking at cutting the reliance on Russian gas as reports suggest they are targeting a reduction on imports by 80% this year. The UK gas system opened up 11 MCM/d long this morning as Norwegian flows remained stabled and wind generation significantly improved from yesterday adding nearly 14GW to the stack today.

Oil prices continued in bullish fashion and rose today as prices went above $126/Bbl. Supply availability is the main focus if any sanctions are brought forward on Russian oil. Though it seems that it will only be the U.S as Europe are likely to hold back.