Energy markets have seen notable shifts in recent weeks, driven by international trade developments and seasonal demand changes. While there’s been some relief following the temporary suspension of US tariffs, uncertainty still weighs on the gas and power markets.
Electricity Market Movements
- UK power prices declined earlier this month, as trade-related headlines triggered a broad sell-off.
- Warmer weather and longer daylight hours have reduced electricity demand.
- Increased nuclear generation and a return of some assets from maintenance have helped offset gas-fired generation.
- Variable wind conditions caused short-term price fluctuations, though renewable output has started to recover.
Gas Market Update
- Gas prices softened as global trade tensions prompted a widespread shift in investor sentiment.
- There has been a reduction of LNG cargoes to the UK in recent weeks but could increase if Asian demand for US cargoes drops due to tariffs.
- Despite continued UK exports to mainland Europe, overall gas demands remain below seasonal norms.
- European gas storage refill efforts are progressing slowly, with ongoing policy discussions adding further uncertainty.
As the second half of April unfolds, businesses should stay alert to ongoing policy developments and evolving pricing dynamics across global energy markets.
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