Spot power prices moved higher on Friday as temperatures remained below average and nuclear production was down. Today has seen the majority of prices fall, with milder temperatures expected this week and wind generation showing an improvement. Gas prices recorded strong gains on Thursday but corrected down on Friday afternoon on the back of the milder weather forecast for this week. Gas prices continue to take direction from an expected uptick in temperatures with further downward pressure coming from scheduled LNG deliveries this month. 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 decreased on Friday on the back of this week's weather forecast, with milder weather expected to return to the UK. Norwegian flows remained low but the expected drop in demand helped the majority of contracts display a rebound. Power prices showed little change on Friday following large gains in the previous session. Stronger Brent provided some support but any gains were restricted by a weaker Euro against the Pound.
How did the energy markets open?
The gas market continues to move down this morning as milder weather remains the main market driver. Additional bearish pressure was also provided by a number of LNG deliveries which are expected to arrive in the UK this month. Power contracts have moved down this morning with the majority of prices following their gas counterparts. Improved wind generation failed to have much impact on the prompt contract which was the exception to the downward movement.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 47.58ppt and £45.03/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 currently stand just below $58/b and have decreased slightly since the start of Friday's session, with mixed economic data resulting in a fluctuation in prices.