Volatility has continued in the European and UK gas markets this week. Although they opened the week lower, reversing some of the previous week’s gains due to a selloff in the global equity markets and with no further escalation seen in the Middle East, prices have crept up with the market citing renewed Russian gas concern. Reports of clashes near the Russian town of Sudzha where Russian gas flows into Ukraine has caused the front month gas contract on the NBP to move up as much as 4%. It is still unconfirmed whether Ukraine have captured the gas measuring facility or not. Ukraine’s gas transmission operator has however confirmed transit flows via Sudzha appear to stable without any changes. Regardless the news of clashes in the region has been enough to spook an already anxious market. The agreement on Russian gas transit to Europe through Ukraine expires in 2024, and Ukraine has said it has no intention of extending it or concluding a new deal.
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