With the added impact of sanctions, the Russian Rouble fell to even further lows in March since the initial crash on the 24th February when Russia declared war. With sanctions mounting throughout the month - and global Governments looking for alternative sources of energy - we saw dramatic increases in market prices, particularly Brent Crude Oil and LNG. Putin then demanded Russian Gas purchases be in Roubles (finally decreed on March 31st), which had a further impact on market prices still. The USA has since been looking to bridge the gap by supplying 15 billion cubic metres of LNG to the EU this year.

Market fundamentals

Brent crude oil prices rose by 20.7% to average $113.26 a barrel in March (up from $93 in February). Prices also ended the month 11% higher than at the start ($112.87 a barrel from $102.89 a barrel) reaching an eight-year high on the 9th March at $126.80 a barrel. Due to the heightened demand for alternative sources, year-on-year prices for LNG have also remained significantly higher than usual.

Contracts

Contract prices did somewhat stabilise in March on from February. They ranged from between 30 p/kWh to highs of 38 p/kWh at certain points (down from approximately 42 p/kWh in February).

At NFU Energy we talk to the best and most stable suppliers in the UK and have relaunched the NFU Buying Group with the aim of a bulk purchase obtaining a discounted rate for members. If it’s time for you to renew it might be worth exploring the benefits of flexible purchasing or discussing new products suppliers are bringing to the market. Either way, we can help so please get in touch on 024 7669 6512.