Last Friday, natural gas prices remained steady at the NBP (National Balancing Point), supported by record-high storage levels that avoided near-term supply risks. Despite a late afternoon increase in curve contracts, the energy market ignored Ukrainian attacks in Russia.
What does this mean?
The Governor of Russia’s Kursk Region reported that Ukrainian artillery had struck several towns near the Russian border. Sudzha, crucial for Russian pipeline exports to the EU through Ukraine, was one of the effected towns. Despite the attacks, no infrastructural damage was reported and Sudzha nominations continue as normal.
The fuller storage levels across Europe have contributed to a steady energy market. According to Gas Infrastructure Europe, continental storage stocks now stand at 73.18% compared with the 10 year moving average of 58.15%. The full storage levels have likely protected the energy market from other factors that would make it increase.
Summary
This week, the fuller storage capacity across Europe is keeping the market level. Even with news of the Ukrainian attacks on Russia, the market remained largely unaffected by this development. This Monday, traders slightly discounted key contracts compared to Friday’s close. The market is currently offering the Winter-24 front season contract around 1.5p/therm (0.05p/kWh) below its previous settlement, reflecting its confidence and preparedness.
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