Energy traders are begging central banks for emergency cash to keep commodities markets functioning amid Russia's attack on Ukraine

• A group of energy traders has asked central banks for emergency cash to maintain an orderly market.
• In a letter, the European Federation of Energy Traders said an "already challenging situation has worsened." 
• Since Russia's attack on Ukraine, energy prices, such as oil, have soared. 

European energy traders said they're in dire need of cash to keep the commodities markets going. 

According to a letter dated March 8, the European Federation of Energy Traders petitioned central banks for "emergency" liquidity to maintain the functioning of gas and power markets, which have been rattled by Russia's attack on Ukraine and subsequent sanctions from the West.

The group, which includes energy titans like BP, Shell, and ExxonMobil, said the recent crisis has vastly exacerbated problems in the commodities market initially brought on by the COVID-19 pandemic. 

"Since the end of February 2022, an already challenging situation has worsened and more energy market participants are in a position where their ability to source additional liquidity is severely reduced or, in some cases, exhausted," read the letter, which was seen by Insider and first reported by the Financial Times.

In recent weeks, energy prices have surged, with oil prices, for one, skyrocketing above $100 a barrel. The trade group said help is needed to soften the blow of margin calls amid the price volatility, as it feared some firms risked not being able to meet additional calls. 

Peter Styles, executive vice chair of the EFET Board, told the Financial Times that the goal is to maintain an "orderly" energy market and allow energy suppliers to "retain the opportunity to hedge their positions," even though hedging activity has decreased amid the chaos. Styles was not immediately available to comment to Insider.

Russia — a major exporter of commodities such as oil and gas — launched a full-scale attack on Ukraine last month, which sent ripples through the market. Turmoil was exacerbated by western sanctions intended to hurt Russia's economy, political leaders, and some of its wealthiest citizens. This week, oil has fallen back below $100 a barrel as peace talks progressed between Russia and Ukraine, and the demand outlook slumped amid rising coronavirus cases in China.