7th August 2014 | Posted by: Daniel Birkett | Market Analysis

Spot power prices were under some downward pressure from lower consumption yesterday but stronger gas prices helped to push contracts higher. Further bullish movement is expected this afternoon as nuclear availability is set to decrease and gas prices continue to strengthen. Gas prices continued to rise due to concerns regarding the Ukrainian conflict and the effect it could have on Russian supply into Europe. The UK gas system is long this morning and demand remains 11% below the seasonal norm, but influence continues to come from Russian supply worries and further gains are expected. 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 posted a loss of 0.30ppt yesterday as rumours regarding a halt in supply from Russia were quashed. However, the tensions in Ukraine continue to have an effect on the market with most contracts moving higher. Power prices followed gas and closed at a premium, Front-Month and Front-Quarter contracts all went up. Q4-14 was the session's biggest mover and added £1.50/MWh to its price, while Day-Ahead decreased by £0.45/MWh.

How did the energy markets open?

The UK gas system was 9mcm long this morning as 11mcm was withdrawn from storage facilities which resulted in levels falling below 94%. Uncertainty in regards to Eastern European supply continues to push prices higher this morning although it is thought Ukrainian storage levels are sufficient. Wind generation levels are forecast to improve tomorrow but this had little effect on the Day-Ahead contract which rose by £0.75/MWh. The majority of contracts displayed gains as stronger gas and coal offered support to the bulls.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 58.13ppt and £49.95/MWh,respectively. This can be seen in the graph below.

  energy prices

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

Brent 1st-nearby prices were relatively stable yesterday as geo-political tensions were offset by healthy supply. WTI fell by $0.50/b to just above $96.69/b, while Brent currently trades at $104.4/b.