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Energy prices have opened lower this morning thanks to favourable weather - 16-02-2022

Close price: Prices saw just over a 10% drop, with the greatest drop on near term prices. This way mainly due to a suggestion of easing tensions on the Ukraine border with reports some Russian troops were moving out of the area. It suggests a lot of risk premium is built into prices and if we can see tensions ease further, prices could drop substantially. This is the big if though, and with other reports suggesting pop up hospitals are being built at the border, nothing is certain which outcome will outturn at the moment.   

Opening price: Prices opened a lot lower to add to yesterday’s losses, but have since been gradually creeping up. Weaker gas demand in the UK, coupled with almost maximum wind output for the next few days thanks to storm Dudley and Eunice hitting is providing bearish fundamentals in the markets.