Energy Market Update 25/08/2026

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:

🇪🇺 The European Commission has trimmed its winter storage target to 80%, 10% below the mandatory 90% level, with sites currently just short of 62% full. Officials insist that supply security is not at risk.

🌤️ Weather outlooks suggest conditions in early Winter-26 could remain dry and warm. This could alleviate heating demand and reduce gas storage drawdowns in the shoulder months.

⚠️ Washington has declared “economic D-Day” on Iran, with Tehran vowing to respond to fresh sanctions with military action and not allow “a drop of oil” to leave the Gulf. This highlights concerns over a protracted war, as a near-term resolution remains elusive.

🚢 Asian LNG prices are set to climb above $22/MMBtu in Q4-26, compared with an average of just under $17/MMBtu so far in 2026, their highest level since 2023. This keeps competition for LNG cargoes elevated and provides further support to European gas prices into 2027.

⚡ Extreme sunset power price spikes are likely to remain a recurring trend in European markets, as energy storage capacity continues to lag behind solar expansion, while increasingly frequent heatwaves add to price volatility.

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