|Market Close||Market Close|
|Gas prices moved higher on Tuesday morning but the trend reversed in the afternoon as coal, carbon and oil markets turned bearish, while the Pound strengthened against the Euro. The short-term demand forecast is also low due to warm temperatures, weighing on prices at the front of the curve.||Bullish sentiment continued at the start of the session, on the back of rising gas, coal and carbon, however, contracts eased down in the afternoon as coal markets weakened. Poor levels of wind and solar limited downward movement on the prompt, while falling Brent applied additional bearish pressure further out.|
|Market Open||Market Open|
|The system has opened 0.1mcm long this morning as demand levels remain below the seasonal norm, although flows via Langeled, Bacton and St Fergus are reduced. However, prices display further losses due to the weak demand outlook, although low renewables continue to lift CCGT demand. Meanwhile, fuel markets remain bearish and news regarding production at the Groningen facility in the Netherlands is expected tomorrow.||The renewable power forecast for the next two weeks is slightly improved, resulting in losses at the front of the curve this morning with decreases on the gas curve also a factor. Fuel markets have also eased down and the majority of contracts on the far-curve have shed from their price.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices fell to their lowest levels since early May but have recovered since to trade around $75.4/b this morning. Expectations of a rise in OPEC production continue to weigh on the market but concerns regarding a halt in Venezuelan exports resulted in a rebound in prices.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 54.90ppt and £54.53/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
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