Energy Market Update 28/04/2026

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:

⚠️ Rising IEA warns the Middle East conflict could cut LNG supply by 120bcm over 2026–2030, around 15% of expected global supply, reinforcing tighter supply conditions.

🧊 The EU is likely to miss its 90% storage target, as slower-than-normal injections, low starting inventories, tight LNG supply and high prices limit refill rates. This increases winter supply risks.

🌊 China’s National Climate Centre is forecasting moderate-to-strong El Niño conditions over the summer and into autumn, potentially impacting Chinese hydro output, signalling tighter global power dynamics and supporting fossil fuel usage amid a constrained supply backdrop.

🌐 Uncertainty around US–China trade policy, marked by stalled tariffs and mixed messaging, could weaken global demand expectations and add a softer macro tone to energy markets, limiting upside along the curve despite ongoing supply-side risk.

🇬🇧 To reduce power’s link to gas, the UK plans fixed-price contracts for legacy renewables and a higher Electricity Generator Levy of 55% from 45%, aiming to reduce exposure to gas volatility and lower electricity costs.

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