7th October 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved higher on Thursday with support coming from a potential worker's strike at the Nyhamna gas plant in Norway which could impact supply levels. LNG send-outs were weaker in the UK, with a colder weather outlook also a bullish factor. Further out, prices were influenced by stronger coal, oil and power contracts, as well as a weaker Pound. A stronger gas market helped to support the near power curve yesterday, with energy security concerns over the winter period also pushing seasonal contracts higher. Meanwhile, a weaker pound and bullish coal & oil helped far-curve contracts close  at a premium.
Market Open Market Open
The strike at the Nyhamna gas plant was resolved overnight but Norwegian supply has weakened due to an unplanned outage at the Kollsnes processing plant which is expected to last for 2 days. Temperatures over the next two weeks have been revised down yet again and the UK gas system has opened short due to an increase in demand and weaker imports from Norway; gains can be observed across the curve as a result, with Brent also displaying a further increase. Power prices display strong gains this morning with the prompt showing significant upward movement in particular. French nuclear power coming into the UK is very low at present which has led to an increase on the Winter-16 contract. A cold weather forecast and strengthening fuel are also factors behind the bullish trend.

Brent Summary

Brent 1st-nearby prices continue to rally higher and currently trade at $52.75/b this morning, with bullish sentiment provided by last week-s OPEC announcement. Hurricane Matthew is also expected to cause significant damage to the coastline of southern US states, with a number of refined oil storage facilities also lying in its path.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 45.40ppt and £46.98/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

energy price graph - 07-10-2016

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