Flagship Energy’s Tejal Shah Energy Markets Update – 12th March 2025

The market hit a low of 2025 last Thursday before pulling back up over the last couple of sessions. Once again geopolitics is at the forefront with the market awaiting on the Russian response to yesterday’s announcement from Ukraine. A 30-day cessation of hostilities along the entire Ukrainian frontline was proposed after Ukrainian and US officials met in Saudi Arabia. In return, the US resumed military aid and intelligence-sharing that had been suspended after last month’s meeting in the Oval Office between Donald Trump and Volodymyr Zelenskyy. The drop last week probably comes as no surprise after seeing the latest Commitment of Traders report which shows investment fund activity drop another 28% week on week. However, moving away from the geopolitical noise and investment fund activity, fundamentals continue to look tight. Temperatures have eased once again, and end of March early April look set to remain below normal levels. With low wind generation also expected, we can expect a reasonable call on storage over the coming days. Elsewhere Asian LNG prices continue to favour Asian delivery for the balance of year supporting prices.