4th January 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Prices initially opened higher in the first trading session following the Christmas holidays as a colder weather forecast offered support to the near-curve. However, temperatures still remain mild for this time of year and supply levels were healthy which helped contracts to come down in the afternoon. Power contracts were little changed from their closing prices before the Christmas period. Despite a colder weather forecast, an expected rise in wind generation for today helped the prompt to decrease, while the majority of contracts further along the curve were stable.
Market Open Market Open
The UK gas system is short this morning as residential demand has inched higher due to a drop in temperatures. Despite this, contracts remain stable as the cold stint is expected to be short-lived and supply levels are also unchanged; Brent also remains low and continues to weigh on far-curve contracts. A rise in industrial consumption has helped Day-Ahead power climb higher today, ignoring mild temperatures and steady wind production. Meanwhile, the rest of the curve displays downward movement due to a weaker demand picture and healthy generation levels.

Brent Summary

Brent 1st-nearby prices were generally stable over the holiday period and currently trade just above $37.2/b. An oversupplied market remains the main driver of prices but tensions between two of the world's largest oil producing nations, Iran and Saudi Arabia have offered support.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 32.95ppt and £36.28/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 - 04-01-2016