Spot power prices rebounded slightly yesterday afternoon due to the cold temperatures and some supply issues. However, temperatures are set to become milder tomorrow and have helped prices record small losses this morning with further drops expected before the end of the session. Gas prices displayed downward movement yesterday as European systems were well-supplied despite strong demand. Above average temperatures are expected tomorrow and supply levels are healthy which should lead to additional losses. 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?
Price-drops were visible across the gas curve yesterday as healthy supply levels and a milder temperature forecast dictated the market. An increase in Norwegian imports was the main cause for this strong supply picture as well as higher LNG send-outs. Power prices also moved down and tracked their gas counterparts throughout the session, also taking direction from rising temperatures. However, outages at nuclear power plants helped Day-Ahead close at a premium despite strong wind generation.
How did the energy markets open?
The UK gas system opened 11mcm long this morning as overall gas flows improved yet again, displaying a rise of 29mcm as imports via the Bacton interconnector resumed. This in turn led to numerous losses across the gas curve with the downward movement more prominent on the near-curve. Power contracts displayed little movement this morning with most contracts displaying minor losses. Day-Ahead added £0.10/MWh to its price despite strong levels of wind as outages at nuclear power plants continue to push the contract higher.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity recorded a loss - closing at 53.75ppt and £49.28/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 Prices
Brent 1st-nearby prices recorded another significant drop and have hit a new five-year low this morning, trading just below $66/b. A rebound is not expected any time soon as no obvious bullish fundamentals are currently impacting the market.