1st June 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas prices continued to increase yesterday, supported by the drop in Norwegian supply after the Kollsnes plant and Troll field were brought offline for annual maintenance. Additional bullish pressure came from the expected return of the Rough storage facility. The curve gained value yesterday, following the NBP market upwards. The Pound depreciated against the Euro which firmed prices upwards and further support was found from a firmer fuel price.
Market Open Market Open
The system remains undersupplied this morning, as the loss in Norwegian supply is not compensated by other supply components. This tight balance could continue to support spot and near-curve prices today. There is a slightly bearish outlook for the far-curve amid the possible negative impact of oil prices. Day-ahead prices have gained value this morning, while demand is expected to fall over the coming week with temperatures expected to rise above seasonal norm. Prices are expected to therefore stabilise and decrease somewhat in the next few days.

Brent Summary
Brent 1st-nearby prices have seen an increase of over $0.10/b to trade at $49.34/b this morning. The market has been looking for its direction for two weeks, following a strong upward movement from April to mid-May, meanwhile there is a bearish outlook for today.

1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & electricity increased - closing at 35.93ppt and £38.32/MWh, respectively.

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

Click graph to enlarge

Energy Price Graph - 01/06/2016