Spot power prices have moved higher on the back of a drop in wind generation and lower nuclear availability. However, temperatures are expected to be around the seasonal average on Monday which should result in lower demand; prices are expected to stabilise this afternoon. Gas prices moved down yesterday due to low demand and comfortable supply levels thanks to improved LNG flows. Meanwhile, the risk premium in Ukraine is rather low at present which should provide some bearish influence on prices this afternoon. 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?
Day-Ahead gas held its price throughout yesterday's session despite a drop in overall supply due to scheduled maintenance. Upward movement was displayed by front-month contracts and ignored strong LNG supply; Sept-14 climbed 0.55ppt higher. Numerous gains occurred yesterday afternoon as carbon contracts strengthened and offered support to the gas market. Day-Ahead power rose by £0.90/MWh and October-14 also climbed £0.90/MWh higher following a drop of £1.35/MWh on Wednesday.
How did the energy markets open?
The UK gas system opened balanced this morning as gas flows continue to improve, with Langeled output making up for a decrease in Teeside flows. Elsewhere, the US Dollar has strengthened for the third week in a row against the Pound which has provided some bullish influence. On the power curve, Day-Ahead fell by £1.10/MWh as wind generation levels are expected to triple on Monday. Most near-curve contracts moved higher and followed their gas counterparts and lower nuclear availability.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity climbed higher - closing at 56.72ppt and £49.00/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 Prices
Brent 1st-nearby prices remain just over $106/b after losing $6.3/b during the month of July. WTI fell by $2.1/b during yesterday's session and now trades at $98/b taking the Brent/ WTI spread to -$8/b.