GLEG UK Energy Market Update 31-08-26…

UK Energy Market Summary to Friday 28th August 2026

Closing prices 28.08.2026

Wholesale gas and power markets strengthened during the week ending 28 August, while oil moved lower. UK NBP Winter-26 gas increased by approximately 4.1% to 169.3p/therm and day-ahead gas reached approximately 166.5p/therm. Low European storage and continued disruption to LNG flows through the Strait of Hormuz kept winter supply risk firmly priced into the market. UK Winter-26 electricity rose by approximately 3.2% to £137.7/MWh as higher gas costs fed through into power prices.

European gas storage was 62.32% in the latest supplied weekly observation on 21 August, with late-August reporting placing stocks at approximately 63%. This remains materially below the typical late-August level of around 80%, leaving Europe dependent on sustained injections, Norwegian pipeline flows and sufficient LNG availability ahead of winter. The forward curve remains strongly backwardated: calendar-28 gas averaged approximately 77p/therm and electricity £71.6/MWh, materially below Winter-26.

Although near-term prices remain elevated, the forward curve continues to offer more attractive value from 2028 onwards, with electricity trading at approximately 6-8p/kWh and gas at 2–3p/kWh. Businesses should consider securing a proportion of future requirements at these levels to improve long-term budget certainty, control cash flow and reduce exposure to further geopolitical or supply-driven volatility.

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Brent crude fell by approximately 5.4% during the week to $89.31/bbl, reversing the previous week’s gain. Prices eased as more oil moved from the Gulf, Saudi shipments increased and Iraq used alternative export routes. Discussion of a possible new shipment corridor also reduced the immediate premium attached to restricted Strait of Hormuz flows. Geopolitical risk remains elevated, but improved physical supply prevented Brent from holding above $90/bbl.

Please contact hello@gleg.co.uk for a more detailed market analysis and expert view on how to navigate your energy procurement strategy through the current market volatility.