Energy Market Update - 21 February 2025
Energy markets showed minor fluctuations, with UK gas prices ticking higher while power markets softened amid stronger renewable generation. Geopolitical tensions remain a key driver, as Russian strikes continue targeting Ukrainian energy infrastructure.
UK gas prices edged up, with the NBP front-month contract settling at 114.60p/therm, up from 113.55p/therm the previous day. Despite the increase, prices remained rangebound, with resistance at 120p and support at 113p. Milder weather and reduced demand kept bearish pressure on the market, though unplanned Norwegian outages, including at Asgard, temporarily limited supply. LNG imports remained strong, with 14 cargoes expected in the coming weeks, providing stability to supply. European gas storage levels stood at 41.93%, with tighter supply conditions in Eastern Europe following Russia’s strikes on Ukrainian gas facilities.
UK gas prices edged up, with the NBP front-month contract settling at 114.60p/therm, up from 113.55p/therm the previous day. Despite the increase, prices remained rangebound, with resistance at 120p and support at 113p. Milder weather and reduced demand kept bearish pressure on the market, though unplanned Norwegian outages, including at Asgard, temporarily limited supply. LNG imports remained strong, with 14 cargoes expected in the coming weeks, providing stability to supply. European gas storage levels stood at 41.93%, with tighter supply conditions in Eastern Europe following Russia’s strikes on Ukrainian gas facilities.
Elsewhere in commodities, Brent crude remained steady at $76.48/bbl. Carbon markets weakened, with EUAs falling to €72.67/tonne, down from €74. Henry Hub gas prices slipped to $4.15/MMBtu, while Asian LNG benchmarks held firm at $14.25/MMBtu.
Market focus remains on geopolitical risks, storage levels, and LNG flows, with ongoing uncertainty around European energy policy shifts and supply security.