Spot power prices have shown little movement this morning as ample renewable generation has been offset by a delay in the return of two reactors at the Tihange-1 nuclear plant; they are now expected back online this Sunday rather than tomorrow.
Gas prices moved down yesterday due to a healthier supply/ demand outlook and a stronger Pound. Today, prices have received support from stronger oil, although overall fundamentals remain bearish with demand levels expected to decrease over the coming days.
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 yesterday as demand levels fell, contributing towards a comfortable gas system, while a stronger Pound was also a bearish factor. The UK gas system was long towards the end of yesterday's session, compared to the end of trading on Monday when it was 34mcm short. Meanwhile, temperatures are expected to improve as the week goes on which should see demand levels fall further.
Power contracts also displayed a bearish trend with lower demand and improved renewable generation weighing on prices; weaker gas and a stronger Pound also offset a rise in coal prices. Day-Ahead shed from its price due to the milder weather forecast and an expected rise in wind generation.
How did the energy markets open?
Far-curve gas prices have increased this morning following a rise in Brent but the overall outlook is bearish as consumption levels are set to fall further and the supply outlook is stable. However, the system was slightly short this morning as Norwegian flows have decreased from the strong levels seen last week.
Power prices display mixed movement this morning with near-curve prices moving down on the back of comfortable wind production and reduced demand. Further out, stronger oil prices have helped to support some contracts, despite coal correcting some of yesterday's gains.
1-year forward prices
Market close data has revealed that the 1-year forward price for h commercial gas increased, while commercial electricity posted a small loss - closing at 42.18ppt and £42.50/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 trade just below $50/b this morning following a sizeable gain yesterday due to an improved global economic outlook.