9th November 2015 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved higher Friday morning as an outage at the South Hook LNG terminal reduced supply levels in the UK. However, the outage was resolved in the afternoon and a milder weather forecast helped contracts to shed from their price, with further bearish pressure coming from an oversupplied system. Downward movement is evident on the gas curve this morning despite weaker LNG send-outs. The UK gas system remains oversupplied as demand for gas-fired power generation is lower due to higher wind production. Norwegian flows are also strong and temperatures are expected to stay above the seasonal norm, resulting in a bearish outlook.
Market Open Market Open
A strong wind generation forecast, milder temperatures and weaker gas helped to weigh on the prompt and near-curve power contracts on Friday. Improved renewables reduced the UK's reliance on more expensive gas-fired generation and residential demand was below average; supply levels were comfortable as a result. Wind levels are set to remain strong over the next few days which has helped Day-Ahead power record another loss this morning. Falling gas provided extra downward pressure on the near-curve, while weaker Brent and coal helped far-curve prices open at a discount.

Brent Summary

Brent'1st nearby prices recovered from some of their losses from previous sessions on Friday but have fallen below $48/b this morning with weak imports to China the main market driver.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity displayed a sizeable gain - closing at 37.02ppt and £39.48/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 - 09-11-2015