Energy Market Insights – Week of May 6th, 2025

Phil McCabe
Phil McCabe

Your Weekly Pulse on Energy Pricing & Trends

Welcome to our Weekly Energy Market Insights, designed to keep Irish businesses up to speed with the key developments shaping energy costs across Europe. Bringing you essential updates on gas and electricity markets, storage levels, weather impacts, and geopolitical influences—so you can stay ahead of price volatility and plan with confidence.

🔎 This Week’s Highlights

📉 Gas Prices Hold Firm Amid Norwegian Outage

European gas prices remained supported this week, driven by ongoing production disruptions in Norway. A key facility—Aasta Hansteen—has experienced an unplanned outage, removing approximately 22 million cubic metres (mcm) of gas from daily supply.

The duration of the outage remains unclear, raising concerns about near-term supply tightness. These fears are being reflected in the market, where forward prices have also edged higher amid broader global trade uncertainty and new tariff announcements from the US.

🌦️ Weather & Demand Outlook

  • UK Forecast: Temperatures are expected to remain cooler-than-normal through the end of the week, returning to average levels into early May.
  • Continental Europe: Conditions should stay close to seasonal norms, which is helpful for reducing gas demand and supporting storage replenishment.

 

🛢️ Gas Storage Levels: A Growing Concern

  • Current EU Storage: Just 28% full, compared to 60%+ this time last year.
  • Summer Injection Target: Europe needs to inject roughly 16 billion cubic metres (bcm) over the coming months to reach safe winter levels.
  • Unlike 2024, this must be achieved without the benefit of 40mcm/day Russian flows—placing more pressure on LNG imports and renewable generation.

 

📌 Implications for Irish Businesses

  • Short-term pricing remains volatile, with supply and weather conditions adding to the uncertainty.
  • Businesses should monitor forward curve movements and consider hedging opportunities where appropriate.
  • Strategic procurement decisions now could offer protection against rising Q3 and Q4 prices.

 

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