Energy Market
Report
6th July 2026
The market reversed direction, with gas and power posting their first weekly gains
in a month and both the front of the curve and forward seasons moving higher.
The rally was driven by extreme heat across Europe lifting cooling demand and
gas-fired generation, falling wind output increasing the call on gas amid a heavy
UK nuclear outage slate, and renewed concern over the sluggish pace of storage
refilling, with European inventories well below last year and the five-year average.
Norwegian pipeline maintenance restricted exports into Europe, keeping
continental balances tight, while Asian demand pulled LNG cargoes away from
European terminals. Shipping activity through the reopened Strait of Hormuz
continued to build, but LNG deliveries to Europe have yet to increase enough to
ease supply constraints.
Qatar and Pakistan confirmed positive progress in indirect US-Iran talks in Doha,
suggesting diplomacy is holding, but with the heatwave persisting, storage lagging
and the 60-day negotiating window still live, the near-term balance of risk remains
to the upside.