Market Update Weekly Summary - 4th March 2022

In the past week, we have seen energy prices in the UK and Europe steadily increase. As it stands energy is continuing to flow out of Russia and has generally not been affected yet. As the situation in Ukraine continues to escalate, it is difficult to see a scenario where energy supplies are not going to be interrupted either by the heightening of existing sanctions, or military conflict resulting in damage to the local energy infrastructure, potentially even both scenarios.

Any interruptions in supply will result in a sharp increase in European energy prices, which most likely will have ripple effects in other markets – e.g. pressuring LNG exports from America, Australia, and Qatar to compensate for Russian natural gas flows into Europe.

We are continuing to advise that customers with contracts up for renewal in Q2 and Q3 of this year should be looking to fix their positions for the short term as soon possible, to manage the risk of the increasing likelihood of disruptions to Russian energy supplies.

We are also hearing concerning information from organisations, about how they are being contacted by some energy brokers and being pressured in to taking out long term lengthy fixed contracts. Our advice is that you should not fix in for the long term. It doesn’t make commercial sense to sign a lengthy contract at prices that are the highest we have seen for a very long time.

Please get in contact with the Dukefield Energy team and we will be more than happy to talk you though all the options available without any obligation.

Phone: 0345 4022 461

Email: info@dukefieldenergy.co.uk