Energy Market Update 12/08/2025

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:

📈 Global LNG exports have risen by 15% year-on-year as US commissions new export terminals and expands existing capacity, improving supply fundamentals and aiding EU storage replenishment.

⚖️ Macroeconomic uncertainty persists as many of the US tariffs kicked in last week, whilst markets also remain concerned around threats of further tariffs on Russian trading partners.

🔋 Europe’s battery storage capacity is set to rise tenfold by 2040 to meet soaring flexibility needs, narrowing extreme price spreads and providing crucial support amid volatile renewable output.

🚨 Ukraine’s gas storage stands at a 12-year low, and Russian strikes on the Odesa interconnector threaten US-Azeri supply routes, heightening W-25 and 2026 supply risk.

🌡️ Intense summer heatwaves lifted EU power demand by 7.5% and prompted output cuts at nuclear stations. Concerns over this becoming the norm in future years due to climate change offer support to summer seasonal contracts.

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