Energy markets moved higher through mid-August, as another European heatwave, stalled US-Iran talks, and tighter winter supply conditions continued to support gas and power prices.
Another European heatwave added pressure to short-term power markets, helping to push UK day-ahead prices to their highest level in two months.
French nuclear generation fell sharply as high river temperatures restricted reactor availability, reducing electricity supply across the Continent.
Lower wind generation tightened UK supply further during the first half of August.
Near-term gas prices increased as US-Iran talks stalled and hopes of an agreement to reopen the Strait of Hormuz weakened.
European gas storage has moved above 60%, but levels remain significantly below the five-year average due to slower injections.
Winter supply concerns further increased after a partial outage at Norway’s Ormen Lange gas field was extended from this October to February 2027.
Markets will continue to watch developments between the US and Iran, while European gas storage, LNG availability and Norwegian supply remain important factors as attention increasingly turns towards winter.
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