Flagship Energy’s Tejal Shah Energy Markets Update – 6th February 2025

After hitting 2-year highs the market has retreated somewhat over the last couple of days. Potentially investment funds with long positions are exiting as we now head towards the end of the winter period and as temperatures and wind forecasts are set to improve in the coming weeks. Yesterday we also saw reports that President Trump has confirmed talks with Putin to negotiate the end of the conflict in Ukraine. Further pressure also came from a push by several EU member states to lower gas storage targets or be exempt, citing concerns that the requirement is driving market speculation and pushing up prices. At the same time EU leaders are also considering the revival of the gas price cap.