Both near and far term electricity and gas prices moved down over the month of May.
On the near term market the UK is has been extremely well supplied with gas, whilst demand has been relatively low. LNG cargos have been heading into the UK throughout the month, adding to an already comfortable supply situation.
Further out on the curve prices started the month volatile as the crisis in the Ukraine escalated once again adding risk premium to prices. However in recent days talks between the Ukraine and Russia, as well as Ukraine paying off a chunk of its gas debt to Gazprom, has led to more confidence that Europe will not see any disruption to supplies. As such, prices further ahead ended the month moving down, hitting a two month low.
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