The recent plunge in UK gas and power prices slowed on 3rd December, following a lack of breakthrough in talks between the US and Russia over ending the war in Ukraine. During each trading day between 24th November and 2nd December, gas for delivery during January 26 set a fresh 45-month low. This was not repeated during trading on 3rd December.
Talks in Moscow between Russian president Vladimir Putin and US envoy, Steve Witkoff, ended on Tuesday 2nd with the Kremlin stating the countries were “no closer” to an agreement. The Russian leader also accused European leaders of sabotaging American peace efforts and told reporters that “[Russia is] not planning to go to war with Europe… but if Europe suddenly wants to fight us and starts, we’re ready right now.”
Following a last-minute deal in the early hours of Wednesday morning, the EU will now begin to ban all Russian gas imports early in 2026. Plans were put forward over the summer but will now become legally binding.
Weather forecasts into mid-December are currently bearish, with temperatures from 6th December onwards expected to be well above seasonal normal.
Warmer weather for the UK and North West Europe offers mitigation of price risk associated with European gas storage levels. At below 75% as of 3rd December, fullness remains well down compared to the same time during the previous three winter seasons.
November 25 saw the US break its own record, set in October, for highest LNG volumes exported during a calendar month. Exports in November hit 10.9mmt, versus October’s exports of 10.1mmt.
Flagship Energy’s Mike Stafford Energy Markets Update – 4th December 2025 appeared first on Energy Live News.