Bearish movement has continued across UK gas and power markets over the last week, with gas prices further along the curve now striking 44-month lows. Power prices for the same periods saw milder downward movement, but still struck lows not seen since April 25 in the aftermath of the Trump administration’s tariff announcement. Gas and power for Q1 26 each hit a new all-time low on 10th December, although front month prices proved a little more resistant to bearish pressure, finding support at around 70p/th and £80/MWh respectively.
Favourable weather forecasts continued to support bearish movement. The latest temperature forecasts indicate above-average warmth in the UK and the rest of North West Europe until deep into December. Most models suggest temperatures will not dip below seasonal normal until at least 25th December, with only a couple of outliers indicating dips below the norm any earlier.
Wind forecasts also suggest a relatively loose balance of supply and demand over the course of the month, with wind output consistently above seasonal normal until 20th December on the latest models.
The latest Commitment of Traders report shows investment funds increasing their net short positions on Europe’s main gas benchmark, the TTF. Last week showed funds – who typically do not take physical delivery of gas, but generate income through entering and exiting positions – were net short on Dutch gas by 50TWh. This week, funds have increased that net short position to 84TWh.
Turkey has also agreed a short, one-year extension to pipeline gas import contracts with Gazprom. The country remains Russia’s largest remaining European export market, but has diversified its sources of gas in recent months, signing long-term contracts to import US LNG.
Flagship Energy’s Mike Stafford Energy Markets Update – 11th December 2025 appeared first on Energy Live News.