Gas and Electricity Year Ahead Wholesale costs are higher than last week, although they still show good value. Oil is higher at $64.
The capture of Venezuela’s president by the US and their ambitions in the country, has had little impact on energy costs, likely due to their limited Oil Exports. The US has applied 25% tariffs against those that trade with Iran, following Iran’s crackdown on anti-government protests. There is also the threat of US military action. Tensions in the region could see disruption to shipping, and Gas and Oil production.
The cold spell across Europe has had an impact on EU Gas Storage levels, which are now just 54% full compared to 66% last year. The steady flow of Gas from Norway and increasing supplies of LNG, means Gas and Electricity costs have so far avoided their previous volatility. The period of price reductions has stalled as EU Storage withdrawals have increased. With the EU’s plan to end Russian LNG supplies by 2027, there will be some concern for winter 2026/27 Gas stocks, which could add weight to prices throughout 2026. The above factors are creating some nervousness within energy markets.
The last week saw a lower contribution of Wind generation at 28% from 37%. This increased the need for Gas at 40% from 26%. Imports were lower at 10%.
We would encourage those with Gas and Electricity contracts that are due to end in the next few months and possibly further out, to potentially take advantage of the competitive prices and to engage with Indigo Swan to monitor positions closely.
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