Renewed Pressure on Energy Markets: What Companies Should Do Now

After the energy crisis triggered by Russia’s invasion of Ukraine was widely seen as largely under control, developments on the energy markets in early March have once again highlighted how fragile the situation remains. The war involving Iran in the Middle East has pushed oil and gas prices sharply higher within a short period of time. At the same time, it is still unclear how long this situation will last and what further impact it may have on procurement markets. For energy-intensive businesses, this is a clear reminder that even in periods of apparent stability, a professional and forward-looking approach to price risk remains essential.

Volatile energy markets and a new wave of uncertainty

At the time of writing, spot market prices had reached their highest level in three years. Even more striking than the price level itself was the speed and volatility of the movement. Such market reactions understandably create uncertainty and quickly revive memories of earlier crisis phases. As a result, warnings of a potential new gas crisis are already being voiced.

Still, the current market situation deserves a more differentiated assessment. A sharp rise in spot prices does not automatically mean that the same trend will persist equally across all procurement segments. In tense market environments, reacting solely to headlines or short-term price spikes can lead to poor decisions. Energy markets are highly sensitive to geopolitical events, but they can also correct quickly when tensions begin to ease. That is why companies should focus on the broader market picture rather than on isolated peaks.

Why a calm and strategic approach matters

As in most crisis situations, clear thinking is the most valuable asset. So far, March has been unusually mild, with above-average temperatures. This is currently keeping gas consumption at a relatively low level. In addition, the summer months are approaching, when demand typically declines for seasonal reasons anyway. These factors are providing short-term relief and suggest that the latest price movements should not automatically be interpreted as the start of a lasting supply crisis.

At the same time, the geopolitical outlook remains highly uncertain. It is impossible to predict with confidence how events in the Middle East will unfold. If the situation begins to ease politically or militarily, prices could fall again just as quickly as they rose. For procurement teams, that means one thing above all: avoid overreaction. What matters now is to assess scenarios carefully, classify risks realistically, and base decisions on sound market observation rather than on emotion.

Reviewing procurement strategies with discipline

One important signal is that price increases for long-term contracts have so far been significantly more moderate than those seen on the spot market. This suggests that while the market is taking the situation seriously, it is not yet fully pricing in a long-term crisis scenario. For companies, this creates room for action: the priority should be to review procurement strategies carefully rather than to redesign them entirely under pressure.

Whether an adjustment makes sense depends heavily on each company’s starting point. Relevant factors include the current contract structure, the organization’s risk tolerance, expected energy demand in the coming months, and the overall strategic objectives of procurement. In some cases, a more staggered purchasing approach may be appropriate. In others, stronger protection against further price spikes may take priority. There is no universal solution.

This is precisely why expert guidance becomes especially valuable in volatile phases. Companies that continuously monitor market developments and assess their implications professionally are better positioned to make informed decisions. The current market environment should therefore not be treated as a trigger for panic, but as an opportunity to reassess procurement strategy with discipline and perspective. That is how risks can be contained without giving up strategic flexibility.