Energy Market Update 27/08/2025

Welcome to our weekly energy market update, where we share the latest trends, shifts, and key developments impacting the energy sector. Whether it’s fluctuations in oil and gas prices, changes in renewable energy policies, or updates on energy infrastructure projects, we’re here to help you stay informed. Join us as we break down the most important factors influencing the market this week, and explore what these changes could mean for your business.

Current Market Drivers:

🛢️ Asian LNG prices have dropped to a 15-month low due to weak spot demand, narrowing the premium over Europe and limiting upside as Europe remains a key destination.

⚡ Ofgem reforms approved to strengthen demand-side flexibility, granting aggregators wider consumer access and supporting renewable integration — potentially accelerating the UK’s renewable expansion and limiting gas-for-power demand.

🚨 President Trump has renewed threats of massive sanctions against Russia if no peace progress is made within two weeks, while Russia insists that security guarantees for Ukraine require its involvement.

📉 EU gas storage is at 76%, down from 91% last year, keeping injection demand high and highlighting the need for faster replenishment before winter. Added concern is a watch on La Niña that could bring a cold winter.

🔥 Israel has launched initial military action in Gaza City while approving settlement plans and rejecting a Palestinian state, fuelling regional unrest and providing bullish signals along the curve.

Get in Touch