- Electricity and gas prices have moved down significantly since the start of February across both near term prices and those further ahead.
- The fears over an escalation of the crisis between Russia and Ukraine faded, with some of the rises felt to be an overreaction. However the situation still remains unresolved.
- The extremely healthy supply situation took over once again and prices have been moving down steadily, with gas storage levels in the UK currently at 53%, compared to just 6% at the same time last year when the UK was gripped by freezing weather. This comfortable situation is replicated across Europe.
- Traders are suggesting the comfortable storage situation could be a bearish factor for a few months to come. Temperatures are currently predicted to be above average into June.
- Production from UK gas fields has been strong and a few more LNG cargos have also arrived in the UK, adding to the bearish situation.
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