Energy Market Update 11/08/2026

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:

🚢 UK LNG imports fell 46% year on year in Jul-26, while EU imports dropped 25%, highlighting tighter supply conditions and stronger competition for cargoes. Elevated Winter-26 supply risk continues to limit downside for gas prices.

⚠️ Iran’s proposed Hormuz deal with Oman highlights ongoing supply risks. Iran is seeking 5–7% cargo fees, restrictions on US and Israeli ships and oversight of vessels entering the Gulf. US sanctions and insurance restrictions could further deter shippers, sustaining the risk of disruption through the Strait.

🌡️ Scientists expect El Niño to peak in late 2026 and persist into spring, potentially becoming the strongest since records began in 1950. This could increase global drought risks, disrupting shipping, weakening hydro generation and putting pressure on supply chains.

🏗️ The UAE’s ADNOC Gas is considering an LNG export facility outside the Strait of Hormuz to bypass the disrupted waterway and strengthen supply resilience, highlighting growing expectations that producers will seek to reduce reliance on the chokepoint.

📉 European gas prices face longer-term bearish pressure as the IEA forecasts gas-fired power demand to fall 12% in 2027. Continued renewable growth is expected to displace fossil generation, reducing power-sector gas consumption and easing demand.

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