El Nino's Return: The Climate Threat Turning to Certainty
El Nino's Return:
The Climate Threat Turning to Certainty
20+
Years Of Trade In Energy & Sustainability
No Fee
For A Commercial Energy Audit With Our Specialists
1:1
1-to-1 Support Throughout Your Journey
Let Us Contact You:
ENERGY CONSULTANCY OF THE YEAR 2025
Publish Date:
July 1, 2026
El Niño’s Return: The Climate Threat Turning to Certainty
The world’s largest recorded "El Niño" event weather pattern is developing in 2026, which could impact the energy prices now and in the future. The effects of this phenomena are generally felt after 12 months. So this means what for energy buying in 2027? Well, this global weather is drying up hydropower in Asia, forcing industrial giants like China and India into an aggressive bidding war for Liquefied Natural Gas (LNG) whilst also reverting to coal. Because the UK relies on these same LNG shipments to refill its winter storage, this global supply squeeze is directly driving up domestic wholesale gas and electricity rates.
The Takeaway: The window for cheap summer energy has closed. With traders already pricing a heavy climate premium into upcoming winter contracts, waiting for prices to fall is a high-risk strategy. Securing your baseline energy requirements now is the best way to insulate your business budget from sudden, weather-driven spikes.
Energy Market Report Q3 2026
How Can Advantage Help?
Our sustainability department continue offer an ever-increasing range of products and technology aimed at reducing energy consumption and associated costs as well as driving down carbon emissions.
We will of course continue to keep you updated around these initiatives, but please do reach out to your designated point of contact should you wish to explore your options in this regard.
In terms of procurement, we will of course continue to monitor markets with a view to helping customers navigate the unprecedented circumstances and ascertain when constitutes the best time to seek a contract extension.
Our popular flexible procurement options continue to be an option for an increasing number of clients on either a standalone basis or as part of a grouped basket. This often facilitates access today/month ahead trading markets which have proved to be particularly beneficial to many clients over the winter period.
BULLISH IN Q3
.svg){kind=icon}
IRAN WAR AND GEOPOLITICAL FALLOUT
COMPETITION FOR LNG
LOW EUROPEAN STORAGE
POLITICAL & ECONOMIC INSTABILITY AND UNCERTAINTY
RUSSIA/UKRAINE WAR
RANGEBOUND IN Q3
VOLITILITY & UNCERTAINTY
CARBON
STARMER RESIGNATION
BEARISH IN Q3
US-IRAN DEAL
RE-OPENING STRAIT OF HORMUZ
MILD SUMMER START
WHOLESALE FUTURES PRICES - ‘28 & BEYOND
TRUMP’S TARIFFS
GOVERNMENT RESHUFFLE
Speak With Us
We understand the complexities of navigating your energy, book in a time to speak with us below
Book A Consultation
Get In Touch
