3rd June 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas balances faced further supply concerns yesterday following an outage at the North Morecambe field, in addition to the fall in Norwegian supply. LNG output also fell, contributing to increased prices, while cooler temperatures saw demand rise. The strengthening Brent oil price supported the power curve yesterday, as the freeze on interest rates had a bullish effect. The below seasonal norm temperatures have also supported prices.
Market Open Market open
The NBP forward curve has been supported by Brent crude this morning, while UK exports to Zeebrugge via the interconnector pipeline fell to almost 0 to try to counter the fall in supply. Norwegian flows to the UK have started to increase at the expense of flows to other European terminals. This could possibly see the spot and near-curve prices weaken. The power curve has tracked its bullish NBP counterpart, again driven by strong Brent crude. Wind generation is still forecasted to below seasonal norms, while demand is expected to reduce into the weekend due to industrial turn-down.

Brent Summary
Oil trades at £50.14/b this morning, an increase of $0.22/b at the time of writing. Markets were disappointed after the OPEC meeting outcomes yesterday, but regained some strength on the EIA stocks report later in the day. It is unclear which way the market may move.

1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & electricity increased - closing at 36.83ppt and £39.05/MWh, respectively.

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

Click to enlarge graph

Energy Price Graph - 03-06-2016