2nd June 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
A strong fall of the Pound against the Euro saw NBP ICE July 2016 prices increase by 0.24p/th. Far curve prices were slightly down but will likely respond to the OPEC meeting being held today. An increase in solar generation over the next few days as well as an increase in nuclear capacities in Germany pushed spot prices down yesterday. A strike in France is expected to push demand down and improving supply conditions should have a bullish effect on the curve.
Market Open Market Open
Bullish sentiment was short lived this morning as tight Norwegian flows and a fall in LNG output pushed the prices up. Temperatures are below the seasonal norm, pushing up demand. A strengthening oil price has given the power curve further support today. The recent ECB announcement that interest rates will be held seems to have had a bullish effect on the curve. Similar to gas, the below the seasonal norm temperatures are adding further support.

Brent Summary

Oil trades at £49.92/b, an increase of $0.58/b at the time of writing. A trend we have seen for a number of weeks now. The markets are yet to react to the OPEC meeting taking place in Vienna today.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & electricity increased - closing at 36.70ppt and £38.92/MWh, respectively.

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

Click to enlarge graphEnergy Price Graph - 02-06-2016