Spot prices received some support yesterday, despite a fall in demand, due to an unplanned outage at one of the Tihange 1 nuclear reactors. An increase in temperature and renewable supply availability should provide some bearish pressure across the power market next week.
Gas prices increased yesterday due planned restrictions on Norwegian export capacity and a drop in Langeled flows of 20mcm/day. Gas demand dropped 38mcm below the seasonal norm yesterday and is expected to decrease further today due to higher temperatures. This will leave the UK system comfortable again today and diminish the bullish influence caused by supply tightness.
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 moved higher again yesterday as restricted Norwegian supply weighed out any bearish pressure from low demand. The warmer than average weather for this month has seen gas demand decrease over the week.
Power prices mirrored their gas counterparts yesterday, increasing into the afternoon. Day-Ahead however recorded a loss due to the increase in wind power generation and rising temperatures.
How did the energy markets open?
The gas curve opened at a premium again this morning as a result of summer maintenance work on Norway's Kollsnes plant causing reducing output. Higher temperatures have reduced gas demand across Europe which has suppressed the bullish pressure caused by tight supplies.
Day-Ahead power prices saw gains this morning, whilst the majority of the near curve recorded slight losses. Temperatures have been revised down slightly for the next couple of weeks, which may cause a slight increase in demand. The outlook for today remains stable with market fundamentals expected to remain unchanged.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas has decreased slightly whilst commercial electricity has increased - closing at 47.79ppt and £45.28/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 Price
Geopolitical tensions arising from the Iran deal and the Yemen Crisis saw Brent 1st-nearby prices rebound by $1/b yesterday, meaning Brent was trading just below $57/b this morning. No significant changes are expected today.