Today’s scheduled talks between Russia and Ukraine could send gas prices down according to analysts eagerly awaiting the outcome.
Alex Guiot, Client Portfolio Manager at npower’s Optimisation Desk said: “The main event today remains the Ukraine-Russia talks about the winter gas agreements.
“We could expect [the talks to] be a bearish price driver later today.”
This would be a change from today’s price moves, suggested the daily market report on ELN, as the analyst explained UK gas prices were currently slipping upwards.
He said: “This morning the prices are resuming their bullish trend. The UK gas system looks tight today, again forecast to close six million cubic meters (mcm) short.”
The IUK pipeline to the continent was exporting around 6mcm because the price of gas at the Zeebrugge terminal is “at a premium” over British prices (known as the NBP or National Balancing Point).