Energy Market Update 02/06/2026

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 US and Iran have exchanged fresh strikes over the weekend, with US attacks targeting Iranian missile sites and Iran’s Revolutionary Guard reportedly striking a US base in Kuwait. While key hurdles remain, little meaningful progress appears to be being made despite ongoing negotiations and headline-driven sentiment.

📦 Bloomberg’s base case outlook suggests EU storage could hit 75% by October, but ongoing Hormuz shipping disruptions could see levels reach only 70%, maintaining upside risk to Winter-26 contracts.

📈 European winter power contracts are trading at their highest premium since 2022, as low gas storage, weak hydropower reserves, and Hormuz-related LNG disruption intensify winter supply concerns.

🤝 Germany is signing a deal with Canada for 1 million metric tonnes of LNG per year once the Ksi Lisims LNG facility comes online, supporting Europe’s continued efforts to diversify future gas supply.

🌬️ Record wind and solar output since the start of the Iran conflict has reduced UK LNG imports and cut gas-fired electricity generation by around a third year-on-year, helping to limit baseload exposure to volatile gas prices and providing an ongoing cushion against upside risk.

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