While prices briefly dipped mid-month due to milder weather and the holiday slowdown, they rose again at the start of the new year as Russian gas deliveries via Ukraine came to an end and colder-than-average temperatures returned.
Energy prices are likely to remain high in the coming months, which could impact budgets, particularly during the colder winter period. Businesses may benefit from closely monitoring their energy use to help manage costs. Reviewing energy contracts and exploring options that provide stability or flexibility could also be helpful during this uncertain time.
Europe faces a challenging year ahead, with a significant storage deficit compared to last year and the five-year average. Meeting demand will require additional LNG imports, leading to increased competition with Asian markets. Prices could remain elevated as Europe works to secure supplies, although slowing economic growth, particularly in Germany, may reduce demand for gas and electricity. Factors like US energy policy, geopolitical developments, and weather conditions will also continue to influence market volatility.
If you’re feeling the pressure of rising energy costs or want to review your current energy strategy, we’re here to help. Our team can provide guidance to ensure your business is as prepared as possible for what’s ahead. Get in touch today.