August 2025 Energy Market Update

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

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.