Energy markets remained highly volatile through mid-March, as ongoing conflict in the Middle East and disruption to LNG flows continued to drive sharp movements across gas and power markets.
Electricity prices rose sharply, with immediate market reactions to ongoing tensions in the Middle East.
Price increases were strongest in the near term, reflecting immediate supply risks and system tightness, while longer-dated contracts saw more moderate movement.
Short-term price movements have also been influenced by changes in wind generation, with lower renewable output increasing pressure on the power system.
UK gas prices climbed significantly, with short-term prices rising sharply as disruption to LNG flows through the Strait of Hormuz increased supply concerns.
Global LNG competition intensified, with cargoes redirected to Asia and prices in key benchmarks rising sharply, tightening supply availability for Europe.
Despite the rally, underlying fundamentals remained relatively comfortable, with lower demand, stable supply and limited storage withdrawals across Europe.
Looking ahead, continued uncertainty around LNG flows and geopolitical developments is likely to keep markets volatile. While fundamentals remain relatively stable, external risks are expected to remain the key driver of price movements.
At CES, we help businesses navigate changing market conditions with risk-managed procurement strategies built for stability and long-term planning
Contact us at [email protected] to discuss your energy strategy for 2026 and beyond.
FOLLOW US
0203 750 0853
Copyright CES © 2024
