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YPO, one of the UK’s largest public sector procurement organisations, has taken proactive steps to help protect customers from market volatility, as conflict in the Middle East impacts energy pricing.

The assurance comes as many organisations across the UK are watching the global energy market closely – with concerns focused on rising gas prices and supply issues.

As a result of the robust 3 year forward purchasing strategy, YPO has already secured a significant volume of gas for 2026 to 2028 supply periods - this forward strategy supports customers by providing longer term budgetary view and also minimising price shocks.

YPO’s Strategic Procurement Manager Rowena Reid recently said:

“YPO baskets are currently purchased beyond 2026, indicating that the long-term hedging strategy is effective and we can reduce the impact of current energy shocks by spreading purchases over a longer period.

“As a result, our customers can depend on greater price stability, better cost certainty, and reassurance that their budgets are protected despite ongoing turbulence in the energy market.”

The reassurance comes as energy markets reached their highest levels, since Russia’s invasion of Ukraine four years ago.

The latest conflict in the Middle East has seen supplies of Liquefied Natural Gas (LNG) and oil placed under threat, with suspension of shipping through the Strait of Hormuz. The Strait is the route for 20% of the global LNG shipments. 

Combined with this, attacks on oil depots are impacting production output – resulting in volatile and fluctuating global markets.

Rowena added: “Another driver effecting gas prices is the gas storage levels in Europe.

These are lower than usual for this time of year after winter temperatures below the seasonal norm. Once the Strait opens, this could lead to competition from Asian countries as they begin to rebuild their supplies ahead of summer.”

Reviewing the situation globally, other factors that may impact markets include:

• European storage: Lower than normal for the season, with added pressure from ongoing geopolitical tensions.
• Norwegian supply: Gas flows have remained stable.
• Geopolitics: The conflict in Iran is currently the biggest factor affecting LNG production and transport.
• Weather: Early March forecasts point to slightly warmer conditions, while April temperatures may fall below seasonal averages.

Looking ahead, YPO’s dedicated energy team remains committed to helping organisations navigate an increasingly complex market.

For further information or tailored support, please contact: Jack.Fairchild@ypo.co.uk and Steven.Warren@ypo.co.uk