Spot prices failed to show any real trend as two nuclear reactors in Belgium came back online but this was countered by a number of unplanned outages in France. Nuclear availability is ample at present but the recent outages have led to week-ahead contracts going up and prompt contracts could also make gains if further reactors go offline.
How did the energy markets close?
Day-Ahead gas was at its lowest price since October 2012, closing at 60.2ppt which was as a result of warm temperatures and low demand. Front-Month contracts made losses with LNG imports expected at the end of June, Far-Curve contracts were also bearish even though Brent prices strengthened. Day-Ahead power went up by £0.10/MWh as demand led to high gas-fired generation because of low nuclear output. Front-Month made a £0.15/MWh loss with the forecast of warm weather and high Norwegian flows a major influence. Further along the curve, prices saw little movement with climbing Brent limiting any losses.
How did the energy markets open?
Seasonal contracts went up slightly due to rising Brent prices, Winter-13 made a gain of 0.2ppt to open up at 70.9ppt. Day-Ahead went up by almost 1ppt as gas contracts took a bearish turn with an increase in storage injections and exports having an effect. July-13 climbed £0.90/MWh and Day-Ahead went up by £0.15/MWh at the weekend due to the gains seen on the gas curve and low nuclear availability. Seasonal contracts saw mixed movement with Winter-13 adding £0.15/MWh to its price and Summer-14 dropping by £0.10/MWh.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity fell slightly - both closing at 66.83ppt and £51.03/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 Oil prices
Brent 1st nearby prices went up slightly on Friday due to strengthening equity markets following the release of the monthly non-farm payroll report in the United States. Chinese oil demand was at 9.48Mb/d in May which was a rise of 1.5% from 2012, refinery runs fell by 1.4% this month and crude imports were down by 5.8%.