Energy market “bullish” on Ukraine nerves

Ukraine’s renewed commitment to sanctions against Russia is adding to the nerves of buyers on the energy market. According to a daily market update from npower, power prices were fairly […]

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By Vicky Ellis

Ukraine’s renewed commitment to sanctions against Russia is adding to the nerves of buyers on the energy market.

According to a daily market update from npower, power prices were fairly “bullish”.

Tim Carter, Client Portfolio Manager said: “After Friday afternoon’s rally when Ukraine announced they would enforce sanctions on Russia including restricting the transit of commodities through the country, the market this morning is bullish again.”

He added: “Participants remain nervous over the implication of sanctions for European gas supply.”

Despite this the UK’s gas system is set to finish the day with more than it needs, forecast to close 10 million cubic meters “long”.

The power system also “comfortable”, with the remnants of Hurricane Bertha swooshing across the country boosting wind power’s contribution up to around 4.5 gigawatts (GW) of UK electricity supply.