7th November 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
European gas prices ended the week on a bearish note on Friday, pressured by forecasts of normal temperatures after a widely awaited cold snap in the coming days and weak oil prices. The UK system was comfortable thanks to high imports from Norway and the continent. The majority of power contracts tracked the movement of weaker gas counterparts on Friday. Losses were seen on the prompt following a milder weather outlook for November and an expected rise in wind levels. A strengthening Pound contributed to sizeable losses on the far-curve.
Market Open Market Open
The gas system remains long this morning, to a lesser extent than Friday, as heating demand increases due to cooler temperatures. A very erratic Power market could influence movements on the gas curve, while Power markets could also provide support in the short-term on the back of tight nuclear supply in France. UK Power has again risen astronomically this morning, following a very tight system and a market which is still feeling the effects from the French nuclear outages. Largest rises are on the front end, with prices rising over 150 £/MWh; however there are considerable rises across the whole curve.

Brent Summary

Brent 1st-nearby prices fell for a sixth consecutive session on Friday, and currently trade at $46.2/b this morning. The downward trend is due to negative statements last week from OPEC and Non-OPEC countries about a deal, together with some bearish US figures linked to the presidential elections.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 47.00ppt and £49.17/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 - 07-11-2016

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