8th August 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas contracts added to their price on Monday as the system remained undersupplied due to constraints on Norwegian imports, with maintenance work at the Heimdal platform the main factor behind reduced flows. The gains were less prominent further along the curve as oil prices stabilised. Contracts along the power curve ticked higher yesterday with support coming from stronger coal and gas markets. A weaker wind generation outlook for today helped the Day-Ahead contract climb higher but stable oil restricted gains at the back of the curve.
Market Open Market Open
Gas prices have moved down this morning as the system is close to balance and warmer weather should reduce heating demand later in the week. Langeled flows have improve despite the on-going outage at Heimdal and the system is just 4mcm short as a result. The majority of power contracts have taken direction from their gas counterparts and recorded a loss this morning. The renewable output is unclear due to an inconsistent weather forecast but the prompt has decreased due to an expected rise in wind output tomorrow.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent 1st-nearby prices trade above $52.5/b this morning with market optimism provided by the on-going OPEC meeting in Abu Dhabi; it is hoped producers who are guilty of low compliance will confirm their commitment to production cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 43.45ppt and £44.00/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 - 08-08-2017

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