Both carbon and gas prices rose in early trading on Wednesday driven mainly by the “disappointing lack of progress for the Trump administration on its plan to end the war,” as stated by BBC News describing the phone call negotiation between the US President and Putin which ended after market close yesterday.

The EUAs traded briefly at €72.85, the highest in two weeks, extending gains from the previous session, while TTF gas rose 4% to levels seen three days ago. Both markets reacted with significant rallies to the news that Russia has agreed only to cease attacks on energy infrastructure and failed to agree to a temporary truce. 

However, shortly after the call ended, Russia started to launch air attacks against civilian targets, raising doubts about whether an agreement could be achieved that could actually bring lasting peace in the region. 

“European gas markets remain stuck between a tight prompt physical market and the possibility of increased Russian gas supplies,” said analysts at Goldman Sachs adding that current gas storage levels in Europe are “in our view, too low for inventories to reach 90% full by the end of summer.” EU gas storage was at just 34,53% full on Monday, far below the 60% reached a year ago and below the five-year average of 46%. 

Cold weather forecasts are adding another layer of uncertainty to both markets. Milder temperatures are expected for the next week in North West Europe. However, according to Reuters this morning, “lower temperatures are expected for the first three weeks of April,” adding bullish pressure. 

Prognoza meteo care indica o racire a vremii contribuie la cresterea gradului de incertitudine pe ambele piete. Temperaturi balnzi sunt asteptate pentru saptamana viitoare in nord-vestul Europei. Totusi, potrivit Reuters in aceasta dimineata, “valori termice mai mici sunt prognozate pentru primele trei saptamani din luna aprilie,” ceea ce contribuie la presiunea pusa pe cresterea preturilor.