Energy prices were highly volatile through late January and early February, as colder weather and global uncertainty pushed markets higher before a sharp pullback brought prices back down.
Gas prices climbed during late January as cold weather, falling storage levels, and supply disruptions in the US tightened short-term markets.
European gas storage dropped rapidly through the month, sitting well below last year’s levels and keeping markets sensitive to further weather-driven demand.
Early February saw a sharp reversal, with prices falling back as geopolitical tensions eased and revised milder temperature forecasts.
UK gas prices rose again, fuelled by colder temperatures and a significant uptick in consumption compared to late December.
EU storage levels fell more sharply than usual, with withdrawals now well ahead of last year and stocks nearing 50% full, adding to supply concerns.
Asian LNG prices also increased, but stable supply to Europe, particularly from the US, helped cap upside in long term contracts.
Looking ahead, strong LNG deliveries should help support supply, but low storage levels and uncertain weather conditions mean price volatility is likely to remain.
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