• Russian flows coming into the continent remain stable
• Talks between Russia and Ukraine start over the weekend adding hope of the war ending
• Covid cases in China rise significantly supporting the downside on oil prices

Prices across the gas markets continued to fall today as flows from Russia remained stable and demand falling due to the warmer weather conditions. Despite military action in Ukraine not slowing markets have continued to react the fundamentals as the supply looks to be healthy for now.

Talks between Ukraine and Russia over the weekend to end the conflict looks to have supported some of the bearishness in prices and along the commodity complex. With that said markets will remain volatile with focus still on potential supply disruptions as the war continues. The UK gas system opened up 6 MCM/d undersupplied as gas demand for power increased due to lower wind speeds which is likely to remain until early April.

Despite gas markets falling carbon prices rose today across both the UK and EU index’s. Oil prices saw losses of around 7% today as talks between Russia and Ukraine added some hope of the conflict ending. Covid cases in China have risen significantly and added further downwards pressure on oil markets.