UK Energy Market Update: Early April

UK Energy Market Update:
Early April

Energy markets remained highly volatile into early April, with sharp and often unpredictable price movements across gas and power markets.

Electricity Market Movements

Power prices remained highly reactive to geopolitical developments, with each new update on the Iran conflict triggering sharp price movements.

Short-term prices have been more unsettled, while longer-term contracts have held firmer, reflecting ongoing uncertainty about future supply risks.

Strong renewable output and improved nuclear availability helped ease system pressure at times, although this has been outweighed by wider market sentiment.

Gas Market Movements

Gas prices have been highly volatile, with markets reacting quickly to changing signals around the Iran conflict and the outlook for LNG flows.

LNG supply to the UK fell during March, but lower demand meant overall supply remained relatively balanced in the short term.

European storage levels remain low for this time of year, increasing pressure to rebuild inventories ahead of next winter as global competition for LNG continues.

Market direction will continue to depend heavily on geopolitical developments and LNG availability. While underlying supply and demand conditions are relatively stable, external risks are likely to remain the main driver of price movements.

At CES, we help businesses navigate changing market conditions with risk-managed procurement strategies built for stability and long-term planning.