Energy markets started moving lower in mid-June, as growing optimism around a potential peace agreement in Iran has reduced risk premiums across gas and power markets.
Hopes of a peace agreement in the Middle East have now eased power prices, though the market remains highly sensitive to new developments.
Strong wind generation helped support electricity supply, easing short-term price pressure.
Nuclear generation remained constrained by maintenance and outages, disrupting imports.
Gas prices fell as hopes of the Strait of Hormuz reopening increased, easing concerns over LNG supply disruption.
Gas demand returned closer to seasonal norms during the first half of June, following a period of weaker consumption earlier in the year.
European gas storage levels continued to improve, although reserves remain significantly below last year’s levels for this time of year.
Markets will continue to monitor developments in the Middle East and the outlook for LNG flows through the Strait of Hormuz. While recent geopolitical developments have eased pressure on prices, storage levels and supply availability remain important factors for the months ahead.
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