Energy Market Update 31/03/2026

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:

🔥 The Middle East conflict has broadened further, with Yemen’s Iran-backed Houthis launching attacks on Israel, opening a new front alongside continued Iranian missile and drone strikes, while Israel expands air operations across Iran and Lebanon. This wider conflict raises fresh risks to global energy flows, with the Strait of Hormuz still effectively blocked and growing concern around disruption to the Bab el-Mandeb chokepoint.

📉 LSEG’s latest summer outlook shows the expected LNG supply surplus has been wiped out due to Middle East disruption, with the market now at risk of moving into deficit.

⚡ LSEG forecasts a 46% increase in negative spot power prices this summer, pointing to a continued trend of negative pricing driven by renewable generation.

🛢️ Signals from the UK retail sector suggest softer consumer demand, while rising oil prices linked to Iran tensions could further squeeze household spending against an already fragile energy demand backdrop.

🚢 TotalEnergies has confirmed it will not declare force majeure and will honour all LNG contracts on price and volume, stating its global portfolio is strong enough to offset missing Qatari supply.

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