Energy Market Update: 19th - 23rd May 2025
Gas and power prices climbed again last week, rising for a second week in a row as Norwegian maintenance continued and political uncertainty lingered. Here's what moved the market and what it means for your next contract.
📊 Weekly Energy Market Recap
⚡ Quick Snapshot
- Day-Ahead Gas: Up from 79.36 p/therm to 85.72 p/therm
- Day-Ahead Power: Rose from £77.63 to £85.89/MWh
- Both markets reached
new 6-week highs, led by lower Norwegian flows and geopolitical risks
📅 5-Week Price Trend
| Week Ending | Avg Gas (p/th) | Avg Power (£/MWh) |
|---|---|---|
| 23/05/2025 | 85.72 | £85.89 |
| 16/05/2025 | 79.36 | £77.63 |
| 09/05/2025 | 82.14 | £83.91 |
| 02/05/2025 | 76.39 | £77.68 |
| 25/04/2025 | 84.07 | £86.25 |
📈 Prices are now firmly back on an upward trajectory after a brief drop mid-May.
📉 Market Overview
📌 Rangebound to Rising
Markets opened quietly but surged midweek as Norwegian gas flows dipped sharply and peace talks between Russia and Ukraine fell flat.
🌍 Political Influence
A phone call between Trump and Putin failed to yield progress, while U.S. senators proposed new penalties on Russian trade. Sentiment remains sensitive to headlines.
🧊 Weather & Storage
Slightly cooler temperatures and strong gas storage targets in the EU (~45%) added to bullish pressure.
📊 Weekly Prices at a Glance
| Gas (Day-Ahead) | Power (Day-Ahead) | |
|---|---|---|
| Highest | 89.80 p/therm (21/05) | £88.58/MWh (23/05) |
| Lowest | 80.25 p/therm (19/05) | £84.08/MWh (19/05) |
| Weekly Average | 85.72 p/therm | £85.89/MWh |
| Change vs Last Week | 🔺 +8.0% | 🔺 +10.6% |
🔍 Key Factors This Week
🟨 Soft Fundamentals
- 📉 Norwegian gas flows hit a low due to Kollsnes maintenance
- 🌡️ Weather cooled midweek, raising gas-for-heating demand
- 🔋 EU storage hit 45%, still behind seasonal average
🌍 Geopolitical & Trade Headlines
- 🧾 Failed Russia–Ukraine peace talks dragged on
- 📞 Trump–Putin call offered no breakthrough
- 🇺🇸 New U.S. legislation proposed trade penalties on countries buying Russian energy
- 🌏 LNG demand in Asia picked up, raising competition for supply
📣 What This Means for Your Business
🔹 Contracts Ending Soon (0–3 Months)
Now is a sensible time to fix. The market has been climbing and recent dips are being erased. Locking in now could protect you from any further short-term spikes.
🔹 Contracts Ending Mid-Term (3–6 Months)
Request a quote and set a trigger point. You may want to wait — but prices are rising, and a dual quote (for now vs. later) can help you make a clear choice.
🔹 Long-Term Renewals (6+ Months)
No rush, but monitor closely. If we see another Norwegian outage, or if peace talks fall apart, prices could creep up. Set price alerts and review quarterly.
👉 Avoid paying more than you need to.
If your contract’s due soon, now could be a smart time to get a fixed quote while prices are still below winter highs.
📈 6-Month Energy Market Trends
Gas and power prices bounced sharply after weeks of sideways movement.
We’re now seeing prices at their highest since late March.
📈
Gas is nearing 90 p/therm again, a level last seen in mid-Q1.
📈
Power is back near £90/MWh, driven by supply fears and tightness in LNG and renewables.
🔭 Next Steps
Ready to Lock in Better Rates or Stay Ahead of the Market?
Our experts monitor global energy movements so you don’t have to—take control now.
🔮 Looking Ahead
- 🔧 Norwegian flows expected to return to normal — could ease pressure
- 🧊 Cooler weather across Northern Europe may increase short-term demand
- 📅 All eyes remain on whether any progress will be made on Russia–Ukraine peace
- 🧾 New U.S. sanctions could spark more volatility depending on timing
🤝 Final Thoughts
The market continues to react more to politics than physical shortages.
But prices are clearly rising, and the risk of doing nothing is growing.
If you’ve got a renewal due before summer — now is a good time to review it.
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