Energy markets remained volatile in January 2025, with fluctuating gas and electricity prices driven by cold weather, supply disruptions, and shifting demand. Europe’s reliance on LNG grew, while renewables and geopolitical tensions shaped market trends. Here is a breakdown of the key highlights from each week in January:

Week of 6th of January 2025:
European gas storage fell to 69% amid cold weather and low wind generation, driving bullish short-term fundamentals. However, milder forecasts and increased LNG arrivals later in the month provided longer-term stability. Key developments included Cheniere Energy’s Corpus Christi expansion boosting global LNG supply and Ukraine’s first LNG cargo, improving European energy security.

Week of 13th of January 2025:
Gas storage dropped to 66% as cold weather persisted, but LNG supply remained strong, helping ease concerns. Market volatility was influenced by speculative trading, geopolitical risks, and high intraday electricity prices. The UK maintained its status as an attractive power import market, but concerns over Norway’s interconnector renegotiations and European market instability raised risks for future energy security.

Week of 20th of January 2025:
UK electricity prices hit a two-year high due to record-low wind generation and reliance on imports. Wind output averaged just 0.9GW, underscoring the risks of intermittent renewables. France’s strong nuclear generation supported UK imports, but long-term energy security concerns persisted. The UK and Europe face mounting pressure to rebuild depleted gas storage, which is pushing up summer gas prices.

Week of 27th of January 2025:
Gas prices eased from a 14-month peak but remain well-supported due to storage demand. Electricity prices held steady, supported by record-breaking wind generation in 2024, which overtook gas as the UK’s top power source. The European Commission’s storage targets will sustain gas demand through summer, while geopolitical risks and tight global gas markets remain key concerns for 2025.

Conclusion:
Energy markets remain volatile, with gas storage challenges, renewable intermittency, and geopolitical tensions shaping trends. Long-term contracts offer stability, while shorter contracts suit those willing to monitor price fluctuations.

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

☎️ 01738474630

✉️ Enable JavaScript to view protected content.