Thursday 17 July 2014

Gas prices push higher after US-Russia sanctions

Sanctions against Russian companies announced by the United States yesterday are likely to be the “main driver” keeping up power prices this morning, according to our daily market report from npower.

US President Barack Obama’s fresh set of sanctions pummelled US oil firm Rosneft and gas producer Novatek amongst other firms.

Gemma Bruce, Client Portfolio Manager at npower’s Optimisation Desk said: “We’ve seen markets push higher once again this morning as fears of disruption to European gas supply are once again raised.”

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Pointing to the sanctions, she added: “Russia have responded by saying they will hit back in a way that will be painful for Washington.

"While we’re yet to see any disruptions to gas flow to Europe, there are concerns that this could be impacted going forward.”

This could be why the market “started to see a bit of premium return to prices this morning”, added the analyst.