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

Gas Power
Market Close Market Close
Gas prices initially opened lower on Wednesday morning but upward movement on the oil market pushed contracts higher in the afternoon. However, the UK gas system was long throughout the session and demand levels were forecast to fall today which helped to weigh on the near-curve. Day-Ahead power and other near-curve contracts displayed losses yesterday due to a milder weather outlook for the weekend. Prompt contracts were also pressured down by their gas counterparts but a rebound in Brent resulted in upward movement further out.
Market Open Market Open
Supply levels remain comfortable today and demand has subsided due to slightly milder temperatures, resulting in losses on the near-curve. Temperatures in Europe are expected to remain above average until mid-February at least and there are no major restrictions on UK supply. A rise in oil prices is the only clear bullish factor at present which has led to some gains further along the curve. The prompt displayed a sizeable loss this morning as wind generation is expected to rise from 2.7GW to 5GW tomorrow. The rest of the curve was largely bullish despite a milder weather forecast as a rise in oil continues to act as a significant market driver.

Brent Summary

Brent 1st-nearby prices rebounded yesterday afternoon as the market remains volatile due to uncertainty surrounding a potential OPEC meeting to cut production; a weaker Dollar and a bearish stocks reports also offered support.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas displayed a loss, while commercial electricity increased - closing at 30.99ppt and £35.53/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 - 04-02-2016