6th October 2015 | Posted by: Daniel Birkett | Market Analysis

Spot power prices were pushed higher yesterday as temperatures are expected to turn colder later in the week, while nuclear and thermal availability is also expected to drop temporarily due to additional maintenance; further support was also provided by stronger gas, oil and coal.

Gas prices displayed a rebound yesterday as an expected rise in demand at the end of the week and rising Brent provided upward pressure. Temperatures for October were revised lower this morning which could support contracts further out. However, the current mild weather is expected to last till Thursday and demand is currently 9% below the seasonal norm as exports to Belgium have also decreased; near-curve prices have moved down as a result.

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?

Gas prices displayed a bullish trend yesterday as the expectation of colder weather provided support, with demand levels expected to ramp up later in the week. The UK gas system was also undersupplied as storage injections rose to 49mcm, doubling Friday's levels. Meanwhile, LNG supply remained strong with two deliveries expected at the Dragon terminal this week.

Contracts on the power curve also moved higher on Monday, with stronger gas and carbon emission contracts offering support. A colder weather forecast also affected the curve with temperatures in London set to fall below 6 °C at the end of the week.

How did the energy markets open?

Near-curve gas prices have opened lower this morning as demand levels remain well below average as temperatures in the UK are still above the seasonal norm and exports to Belgium are lower. Further out, prices have found support from strengthening Brent which has posted a gain for the second session in a row.

Power prices displayed similar movement to their gas counterparts, with mild weather helping the prompt to decrease. Like gas, upward movement is evident further along the curve as an expected rise in demand and stronger fuel prices dictated the market.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas was unchanged, while commercial electricity decreased slightly - closing at 41.05ppt and £42.18/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 Price

Brent 1st-nearby prices moved higher on Monday as fundamentals were generally unchanged, although an expected rise in US crude stocks limited the gains somewhat; Brent trades at around $49.3/b this morning.