Energy Market Update 07/01/2025

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:

🏭 UK and European storage levels continue to be depleted at a larger rate than last year, amid colder temperatures and loss of Russian flows, supporting buying pressure in 2025.

🌨️ Severe cold weather forecasts in the US are raising concerns about “freeze-offs,” which could cause production disruptions and reduced LNG output amid higher domestic demand for natural gas.

⚡ Significant damage and ongoing attacks on Ukrainian power infrastructure by Russia, coupled with concerns over Slovakia potentially cutting power exports to Ukraine, are driving increased import demand from neighbouring countries, which could limit import prospects for the UK.

🚢 US Cheniere Energy’s Corpus Christi phase 3 expansion has started producing its first LNG and is expected to be fully commissioned by March 2025. This will increase global LNG supply significantly.

📉 An increase in the UK’s domestic price cap by 3% by April is expected to dampen domestic demand and limit overall energy consumption which could provide some bearish signals to the market.

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