Energy Market Update 03/02/2026

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:

🌍 Middle Eastern tensions have waned, as the US and Iran have both signalled a readiness to revive diplomacy after weeks of rising tensions, reducing fears of a new regional conflict.

💨 Greenland-related tensions have revived Europe’s energy security drive, with 10 North Sea countries, including the UK, backing a cross-border offshore wind grid and 15 GW annual build-out from 2031–40.

⚡ The UKERC expects the correlation between gas and power prices to weaken over the next three years due to increasing renewable capacity expansions.

📉 Despite the IEA forecasting a 2% decline in European gas demand in 2026, Kpler suggests that European gas demand could rise 2% this year, driven by industrial demand in the Northwest of the continent and summer cooling needs.

🤝 The EU–India free-trade deal, due to take effect in around six months, could lift industrial confidence and power demand expectations, supporting a firmer tone across European energy markets.

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