LONDON, (Reuters) – British and Dutch gas prices dropped on Friday as profit took place after the Russian invasion in Ukraine. Auction results also showed that flows could resume westward via Russia’s Yamal Europe pipeline.

Dutch gas markets saw their front-month contracts fall 27.95 euro to 108.05 euros per Megawatt Hour (MWh) at 1224 GMT. They had previously risen to an intraday peak of 140 euros/MWh Thursday.

Price for April fell 17.00 euro at 99.00 Euros/MWh. Winter 2022 was lower at 31.55 EUR at 94.00 Euros/MWh.

On the UK gas market, March saw a 69.47 pence drop to 252.20 pence/therm. Summer 2022 prices fell 70.00 pence, to 260.00p/therm.

The traders claimed that there had been an error in early trade. Later auction results revealed that the Yamal Europe Pipeline from Poland to Germany was in reverse mode and could supply gas again in the usual westward direction.

Gaz-System in Poland, the operator of the Polish section, has determined that Gazprom (MCX) was allocated a gas capacity of 6.8 million kilowatt-hour/hour to transit through the Kondratki transit points from 1500 GMT (1400 GMT) Friday night until Saturday morning.

A trader stated that the return of westward flows is not guaranteed, but the market remains volatile.

Refinitiv Eikon data indicated that the Russian supply has increased to Europe via the Ukrainian route (Velky Kapusany entrance point), since yesterday.

Analysts at Refinitiv said that the price rise had rendered it more affordable to buy Russian gas from the pipeline than spot.

The United States and other nations have imposed a slew of sanctions on Russia in response to its invasion of Ukraine. A U.S. official stated that Russia won’t have its oil or gas flow targeted specifically by the sanctions.

We are concerned about what Russia might do to us in retaliation for our sanctions. According to analysts from ING Economics, the biggest risk is that Russia reduces gas flows to Europe.

Russian Gazprom claimed it is supplying natural gas via Ukraine as per European consumer demand. The demand for gas from European customers was at 103.8million cubic metres as of Friday.

European Union carbon prices increased, with the benchmark December 2022 contract rising 1.16 Euro at 88.19 euro per tonne.