The power market is expected to remain relatively stable over the next few days, though increased wind generation from Germany next week means power prices may shed value. Losses, however, are thought to be limited by weak nuclear availability. Upward revisions on temperature forecasts have placed some bearish pressure on May contracts this morning.
UK NTS demand saw some increases yesterday on the back of increased exports to Zeebrugge and larger storage injections. It is likely that this heightened demand was mainly due to the earlier discounted prices. Despite slight support from this increased demand, the gas curve is expected to remain bearish today.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
How did the energy markets close?
Day-Ahead gas contracts shed 0.25ppt yesterday on the back of the usual Friday drop in demand. Linepack was short for the majority of yesterday meaning that any movement across yesterday's relatively flat curve was upwards.
Near-curve power contracts gained some value yesterday, with Day-Ahead adding £0.90/MWh to its price due to low wind generation forecasts for today, but the earlier than expected re-start of a nuclear plant offered little support.
How did the energy markets open?
Day-Ahead gas contracts continued to shed value today, opening at their lowest level since before 2013, 47.75ppt. Langeled flows were slightly higher today which helped to offset both Linepack opening 8mcm short and a fall in BBL interconnector flows this morning.
The power curve also opened at a discount today, with Day-Ahead shedding £1.45/MWh. Losses can be seen across the remainder of the curve, with falls of up to £0.50/MWh being registered. Wind generation has fallen 3% from yesterday's levels.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 57.25ppt and £49.00/MWh, respectively. This can be seen in the graph below.
Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.
Latest Brent Crude Prices
With the prospect of negotiations in Libya, Brent-1st prices gained $1.36/b, keeping the benchmark above $106.2/b this morning. WTI also saw gains yesterday, meaning the Brent/WTI spread widened to -$5.8/b.