If Your Margins Depend on Stable Energy Costs, This Week’s News Matters…

Energy markets have been calm in recent weeks, 83% storage, mild temperatures and softer demand kept prices steady. But that stability is now being tested.

A drone strike on Russia’s Novorossiysk port has disrupted a key export route, and further attacks on refining capacity are adding pressure to already-strained supply chains. At the same time, tensions escalated in the Middle East after Iranian forces seized a tanker passing through the Strait of Hormuz, a corridor that moves nearly 20% of global oil. These events have reintroduced risk into a market many expected to stay quiet into winter.

What does this mean for the UK and Europe?
Oil prices, down more than 16% this year, are starting to find support as traders factor in potential supply delays. Gas remains stable, but sentiment can shift quickly when geopolitical risks cluster together. If you rely on predictable energy costs to manage margins, this is a moment to pay closer attention.

Could markets stay calm?
Possibly. LNG supply into Europe remains healthy, China continues to absorb discounted Russian cargoes, and mild winter expectations are helping keep prices in check. If these trends continue, markets could remain range-bound but the recent events highlight how quickly conditions can change.

A question worth asking:
If prices moved sharply next week, would your current energy strategy protect you or expose you?

If your business is unsure about its energy position, we can help you review risks, secure pricing and build more certainty into your cost base.
➡️ Message us at hello@gleg.co.uk to discuss options that fit your organisation.