Energy Market
Report
26th May 2026
The market saw a clear split between prompt and forward contracts. Spot power
dropped sharply mid-week on warm weather and strong renewables, with frontmonth June and July gas also falling around 5% on the same fundamentals.
Forward contracts eased too but more modestly, supported by Norwegian supply
outages, the Ichthys LNG strike threat and the ongoing Hormuz crisis. UK gas
storage sits at just 10%, the lowest in Europe and well below the level needed at
this stage of the injection season, providing a hard floor under the forward curve.
EU storage stands at 38.2%, still well behind year-ago levels and the five-year
average, leaving little buffer ahead of next winter.
The Ichthys LNG strike was paused late in the week for two days from 27 May as
negotiations progressed, easing one near-term supply risk, though the underlying
dispute is not yet resolved. The geopolitical backdrop remains unresolved, with
the Strait of Hormuz still effectively closed and no diplomatic breakthrough in
sight. The near-term picture has softened on weather and renewables, but the
structural supply backdrop remains tight and exposed to fresh shocks.

wp-moneysavingenergycouk

See Full Bio