Energy Market Update 15/07/2025

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:

🌍 The US decision to provide additional arms to Ukraine highlights limited prospects for a near-term resolution to the RUS-UKR war, whilst Yemeni Houthi attacks in the Red Sea have started up again, sustaining geopolitical risk.

🔥 Extreme heat in Japan and South Korea has driven up Asian spot LNG prices on increased cooling demand. This trend could be supportive along the curve if sentiment shifts towards this being a normal summer dynamic.

💨 European day-ahead and intraday pricing has remained elevated this summer on weak wind output, heightened cooling demand and risk to nuclear and hydro output. Signs of this being a continued climate-driven effect are supportive to future summer contracts.

🌞 UK Q2 gas burn dropped to 14 TWh, the second-lowest in a decade, as wind and solar output lifted renewables’ share above 50%. This could provide bearish signals along the curve, particularly given the push for greater renewable capacity.

💼 Trump has threatened the EU with 30% tariffs, coming off the back of further tariffs being announced for many nations globally. This brings into focus macroeconomic concerns once again, though 01-Aug implementation limits downside potential.

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