Energy Market Update 02/12/2025

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:

🔥 Warmer temperature forecasts for the UK and Northwest Europe, along with seasonal wind, for December and into January are improving sentiment around European storage exiting the winter in a better position.

🛢️ Record investment into new pipeline infrastructure in the US Permian basin and Gulf Coast are addressing choke points in the US LNG export expansion.

🤝 US and Ukrainian officials made progress in Sunday’s talks, but more work is needed for a peace arrangement.

💸 New US gas wells are coming at three times the cost, raising concerns that European gas prices are going to have to remain elevated for it to remain profitable for US LNG exporters.

🇦🇺 Australia, the world’s third largest exporter of LNG, is facing local gas shortages as demand rises and regulatory hurdles limit new production. This could tighten global LNG markets.

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