Energy Markets Ease as Geopolitical Risk Premium Continues to Unwind
June 26, 2026
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UK Energy Market Summary to Friday 26th June 2026
Closing prices 26.06.2026
Wholesale gas and power markets experienced mixed conditions during the week ending 26 June. European gas prices remained relatively stable following the sharp correction seen earlier in the month, whilst Brent crude oil fell to a four-month low as concerns over disruption to Middle Eastern oil supplies continued to ease. Attention increasingly shifted towards underlying market fundamentals, including European gas storage injections, LNG availability and global economic sentiment.
Despite softer fuel markets, prompt UK and European electricity prices came under pressure during the week as a widespread heatwave increased cooling demand across the continent. Periods of lower wind generation, combined with planned outages at several thermal and nuclear power stations, tightened electricity supply margins and contributed to increased short-term power price volatility.
Within the UK generation mix, renewable output was more variable than in previous weeks, increasing reliance on gas-fired generation during periods of lower wind output. As gas-fired power stations continue to set the marginal price of electricity, wholesale gas prices remain the principal driver of UK forward power markets.
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Brent crude oil declined by around 10% over the week, largely completing the unwinding of the geopolitical risk premium that followed tensions in the Middle East. Looking ahead, wholesale energy markets are expected to remain focused on European gas storage progress, LNG supply availability, summer weather patterns, OPEC+ production policy and wider macroeconomic conditions, all of which will continue to influence gas and power prices over the coming months.
Meanwhile, European gas storage continued to build steadily, reaching approximately 48% full and remaining on track towards the EU’s target of 90% storage capacity between 1 October and 1 December.