UK energy markets remained rangebound in mid-July, with fundamental drivers such as easing temperatures, reduced renewable generation, and evolving LNG dynamics influencing prices.

Electricity Market Movements:

Market prices continue to be mainly driven by supply fundamentals due to the lack of new geopolitical developments, which has subdued sentimental risks.

Temperatures have fallen since the heatwaves earlier this month, reducing the demand for cooling and supporting downward price movements.

Wind generation in the UK dropped significantly in mid-July, down over 40% compared to early July, applying upward pressure.

Gas Market Movements:

Some upward pressure was driven by recent outages at Norwegian gas assets. Most of which have now returned to operations.

LNG market dynamics intensified as rising Asian cooling demand drove up global competition, especially from Japan and South Korea

Two LNG cargoes arrived at UK terminals, easing immediate supply concerns, with additional shipments headed for mainland Europe.

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