All eyes are on Russian pipeline flows into Europe and as to whether increasing flows will lead to lower prices.

So far, the flows have not yet matched the rhetoric of the Russian government. So, the market remains sceptical. However, if flows do come, we would expect it to have a significant downward pressure on prices.

The current energy crisis has had a few different causes and combined it has made a worldwide shortage, which has proved to be much worse in the UK. The main cause has been Natural Gas shortages (a combination of high demand from Asia and lower than usual supply from Russia has made it challenging to obtain natural gas worldwide. Natural gas is also responsible for around half of the UKs electricity generation.

Lower wind power generation has also been a huge factor with some of the least windy months since 1961, the UKs share of electricity generated from wind has been down below 5% on some days.

Lower gas storage has also played its part with the UK having some of the lowest natural gas storage levels in Europe.