Spot power prices display mixed movement this morning as overall generation levels vary from country to country. Nuclear availability in France is reduced but wind generation levels are set to rise across Europe in the coming days. Movement on the gas curve varied on Friday as demand levels are expected to increase this week as temperatures in the UK are forecast to fall below average. A healthier supply picture is set to outweigh the effects of stronger demand this week, while production at the Dutch Groningen facility will not be cut; this afternoon's outlook is bearish as a result. Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
How did the energy markets close?
Most gas contracts climbed higher on Friday due to a higher demand forecast with weather in the UK expected to turn colder. Oil prices also displayed strong upward movement and this in turn helped some far-curve contracts to rally higher. Power prices displayed smaller gains than their gas counterparts, while Day-Ahead decreased on the back of an improved wind and solar generation forecast. Seasonal contracts closed at a premium but were restricted by weaker coal and carbon prices.
How did the energy markets open?
Healthy gas flows have helped near-curve contracts to shed from their price this morning, while temperatures have also been revised higher for the coming week. However, the UK's reliance on gas-fired generation has increased due to maintenance at coal and nuclear power plants. Power prices have moved down this morning with a weaker gas market the main market driver. In terms of generation, maintenance at a nuclear reactor in Hartlepool will continue until the middle of the month and gas-fired generation will remain high for the time being.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity is unchanged - closing at 45.75ppt and £44.30/MWh, respectively. This can be seen in the graph below. Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.
Latest Brent Crude Price
Brent 1st-nearby prices recorded a significant increase on Friday and added around 5% to their price but the market has weakened yet again this morning; Brent currently trades at $64.85/b.