| Gas | Power |
| Market Close | Market Close |
| Downward movement on the oil market transferred to gas prices on Wednesday, with Brent briefly dropping below the $50/b mark. Coal prices also moved down and applied further bearish pressure on the far-curve. Meanwhile, Norwegian flows increased and contributed to significant oversupply in the UK, resulting in losses at the front of the curve. | Mixed movement could be observed on the power curve yesterday with gains at the front of the curve and some losses further out. The solar generation forecast was unclear, while wind levels were weak, resulting in an increased reliance on gas-fired methods. In terms of fuel, coal held firm and Brent shed from its price, applying some downward pressure. |
| Market Open | Market Open |
| Gas prices have stabilised this morning following strong losses in the previous session. The UK gas system is balanced due to a drop in Norwegian imports and LNG send-outs fell to 7mcm, compared to the 25mcm average during May. Oil and Coal prices are generally unchanged from yesterday’s close, while weaker power supply could result in a rise in gas-fired generation. | Movement on the power curve varies once again this morning with an expected drop in renewable generation offering support to the prompt and weaker fuel weighing on the far-curve. Wind generation will remain weak until the weekend before ramping up next week, while solar generation is set to fall. |
For a breakdown of the current generation mix visit our Power Generation Insights page.
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Brent Summary Brent 1st-nearby prices continue to display a bearish trend and have recorded another small loss this morning to trade just below $51.3/b. The EIA report is set to be released today and will be a major factor behind any price movements as traders wait to see the latest US output figures following last week’s surge. 1-year forward prices Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 42.93ppt and £42.76/MWh, respectively. Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page. |
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