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Holding Steady: But Winter’s Coming
Storage Begins To Draw Down: While storage levels are high now, they’re built to be used in winter. Once sites start emptying, the market reacts fast. Faster-than-expected drawdowns can quickly undermine market confidence and inflate forward pricing.
Global LNG Competition Heats Up Europe isn’t the only one preparing for winter, Asia also ramps up LNG imports in Q4. As international buyers compete for the same gas, prices climb across the board — and the UK feels the impact. Tighter shipping capacity and longer lead times only add to the pressure.
Learn the Lessons of Last Winter and Stay One Step Ahead:
The recent stability in prices hasn’t happened by accident. Strong storage levels, lower summer demand, steady solar output, and fewer nuclear outages have all played a role. Together, they’ve kept the market calm, but as we head into the colder months, those conditions are already starting to shift. It doesn’t take much for the balance to tip. A sudden drop in wind, colder-than- expected weather, or a dip in storage confidence can quickly trigger market movement. These changes don’t always give much warning, and once sentiment shifts, prices often move fast. Even Ofgem has highlighted the benefits of securing energy at the right time, noting that fixing can “provide certainty over coming payments.” While aimed at households, the message is just as relevant for businesses. Now, while the market is stable, could be the best opportunity to act before winter pressures start to bite.
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