1st December 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Centrica have announced that withdrawals at the Rough storage facility are set to resume on the 9th of December, resulting in downward movement across the near-curve yesterday morning. However, news from the OPEC meeting in Vienna led to  rising oil prices, resulting in rebounds across the curve, with a cold weather forecast also providing on-going support. High consumption levels continued to support contracts on the near power curve on Wednesday morning, while contracts further out displayed bearish movement. However, afternoon gains on the gas market transferred to the power curve and pushed contracts higher.
Market Open Market Open
An overnight revision in temperatures has restricted upward movement at the front of the curve this morning, with slightly milder weather expected next week. The UK gas system remains short as BBL flows are reduced but the weaker demand forecast is currently the main market driver for prompt contracts. Further along the curve, prices are generally stable with strengthening oil preventing any losses. Changes on the power curve are mixed this morning although the majority of contracts display bullish movement, with support coming from rising fuel costs. A milder weather forecast for next week helped to pressure down some contracts on the near-curve but the prompt has added over £7/MWh to its price due to limited supply via the IFA Interconnector (UK-France) this month.

Brent Summary

Brent 1st-nearby prices have recorded a strong increase as OPEC members reached an agreement to help support the oil market for the first time since 2008, with the organisation re-establishing itself as the main market regulator. Saudi Arabia were instrumental in getting the deal over the line, with Iran and Russia both agreeing to cooperate;  Brent currently trades close to mid-October levels with further bullish movement expected.  

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 44.78ppt and £45.36/MWh, respectively.

Today's prices can also be found in an easy to read table on our 'current UK energy price' page.

Click graph to enlarge

energy price graph -

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