August saw energy markets fluctuate as geopolitical events, shifting supply, and weather patterns shaped prices. While LNG growth added bearish pressure, risks from storage, sanctions, and trade disputes kept volatility high.
Week of 4th of August 2025
Gas and power prices eased as strong Norwegian and UK flows steadied markets. Electricity imports from Europe balanced weaker wind, limiting gas-fired generation. Despite supply gains, geopolitical tensions over the August 8th ceasefire deadline for Russia kept risk premiums in focus.
Week of 11th of August 2025
Markets weighed Trump–Putin talks in Alaska, with gas prices dipping before recovering slightly. Weak wind lifted gas demand, while LNG growth and storage capacity offered bearish support. Heatwaves, tight carbon markets, and Ukraine’s low storage added bullish risks to winter contracts.
Week of 18th of August 2025
The Trump–Putin summit failed to secure a ceasefire, leaving geopolitical risks high. EU storage slipped behind 2022 levels, while strong solar output kept pressure off prices. Centrica’s Grain LNG acquisition raised UK winter supply concerns, and La Niña risks added bullish pressure.
Week of 25th of August 2025
Rising wind and nuclear availability weighed on power prices, while Russia’s Arctic LNG 2 made its first delivery to China, signalling future bearish supply growth. Near-term gas prices stayed supported by storage demand and outages. Global trade tensions added further uncertainty.
Conclusion
Energy prices softened through August but risks remain elevated. Geopolitics, storage shortfalls, and weather patterns could spark renewed volatility, making staged or early procurement strategies key for buyers.
For further insights and information on the dynamic landscape of the 2025 energy market, feel free to contact us:
01738474630
theteam@herestheplan.co.uk