5th May 2017 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
European gas prices fell yesterday, tracking the decline in Brent Oil prices. An oversupplied UK system weighed on the prompt on the back of an increase in Norwegian supply and a day-on-day drop in gas demand. Power prices also fell yesterday, on the back of the falling Oil prices. UK prices were impacted by drops in European fuel markets. High wind power generation also kept prices lower.
Market Open Market Open
Prompt NBP prices have fallen for a second day. Unlike yesterday, Norwegian supply is due to drop with seasonal field maintenance tomorrow and gas demand should increase next week due to colder forecast temperatures. Power prices have continued to fall today, taking direction from a weak NBP and Coal markets. Demand is forecast to be lower today, along with slightly higher solar levels and lower wind generation levels. Supply conditions are seen improving next week on the renewable side.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Oil prices continued to fall yesterday, back to their level before OPEC agreed to cut output at the end of last year. Prices may begin to recover today, especially as global sentiment on financial markets is supported by a good US job report.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 42.08ppt and £41.80/MWh, respectively.

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

Click to enlarge graph

Energy Price Graph - 05-05-2017

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