Energy Market Update - 13 March 2024

The energy market sees stability after Monday's surge, with ample gas reserves and regular LNG arrivals setting a calm tone as winter delivery ends.

In a marked contrast to last week's volatility, Tuesday's session closed flat, signaling a market acclimatisation to ample gas storage and steady LNG supply. Minor adjustments in key contracts, such as the TTF and NBP Front Month, echo this new steadiness amidst the transition out of winter.

Operational status remains unchanged with no new outages. A slight decrease in gas flow and stable EU gas storage levels, paired with forthcoming LNG cargoes, maintain supply security. The market's equilibrium is also influenced by the UK's recent backing of gas-powered stations, hinting at a pragmatic approach towards energy security and net zero aspirations.

Today's contracts and price movements reflect cautious optimism, moderated by the UK's mild weather reducing demand and bolstering the system's supply balance. The ongoing Norwegian outages and expected LNG inflows, against the backdrop of rising oil prices due to anticipated global demand, suggest a complex but stable market landscape as spring approaches.