May 2025 Energy Market Update

Throughout May, energy markets remained relatively stable, with mild weather and strong renewables easing demand. However, low gas storage, shifting LNG flows, and ongoing geopolitical tensions kept future risks in focus.

Week of 5th May 2025
The market opened quietly after the May Bank Holiday. While prices ticked up, the broader downtrend continued. US LNG exports surged, EU storage changes loomed, and redirected cargoes to Asia hinted at shifting global flows. The Ukraine minerals deal softened gas prices, though lingering war tensions added risk.

Week of 12th May 2025
Prices remained stable as the EU cut its storage target to 83%, easing injection pressure. Neutral summer forecasts reduced demand risk, while US-China tariff talks boosted global confidence. But Ørsted’s wind exit, weaker renewables output, and the EU’s confirmed Russian gas ban for 2027 lifted long-term price concerns.

Week of 19th May 2025
Gas held at 3.00p/kWh as bearish pressure from US LNG supply clashed with bullish geopolitical risks. Colder weather and stalled Russia–Ukraine peace talks raised tension. The UK expanded offshore wind plans, but drought risks for hydro and nuclear raised fears of a tighter summer supply outlook.

Week of 26th May 2025
UK gas and power prices rose slightly. European storage was 46.58%, far below last year’s 68%. Norwegian outages and Russian aggression reignited risk premiums. However, mild weather and strong wind helped balance supply. Talks on UK–EU energy market links and carbon alignment could shape future price paths.

Conclusion
Despite softer prices and strong renewables, low storage and long-term risks remain. Locking in long-term contracts offers price stability, while short-term deals may suit those tracking market shifts closely.

For further insights and information on the dynamic landscape of the 2025 energy market, feel free to contact us:

☎️ 01738474630

✉️ theteam@herestheplan.co.uk

Disclaimer The information provided in this report is for information purposes only and should not be construed as financial advice. Prices of the commodities referred to can be volatile, and past performance is not necessarily indicative of future results. The energy markets are dynamic, and prices may rise or fall based on factors including market conditions, economic events, and investor sentiment. The content of the report is subject to change without notice, and the accuracy of the information cannot be guaranteed. Always consider the risks involved in risk management activities, and be aware that market fluctuations create the potential for both gains and losses. Each business must make its energy buying decisions based on its attitude to risk and what the business could withstand if energy prices spike.