3rd February 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas contracts added to their price on Thursday with an unplanned outage at the North Morecambe gas field and a colder weather forecast providing support. The expected drop in temperatures will lead to a rise in residential heating demand, while lower wind levels will result in an increase in CCGT generation. Near-curve power contracts climbed higher yesterday with a below average weather forecast for the second half of February the main market driver; temperatures in London are expected to be 4 °C below the norm. Upward pressure was also provided by rising gas and coal but a healthy wind generation forecast for today limited gains on the prompt.
Market Open Market Open
Low storage levels and a higher demand outlook for the rest of the month has continued to push gas prices higher this morning. However, contracts are close to technical resistance levels and are expected to stabilise this afternoon, with little support coming from the oil market. Power prices continue to follow the movement of their gas counterparts and display further gains this morning, with stronger APi2 coal also a factor. An expected rise in consumption over the next few weeks remains the most significant factor behind strengthening power and gas markets.

Brent Summary

Brent 1st-nearby prices are almost unchanged from yesterday's opening and trade just above $56.8/b. OPEC output cuts continue to provide some support, while new US sanctions in Iran could also affect prices.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved higher - closing at 49.32ppt and £47.45/MWh, respectively.

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

Click graph to enlarge

energy price graph - 03-02-2017

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