11th July 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved down on Friday as the UK gas system was well-supplied throughout the session and Brent weakened, resulting in bearish sentiment across the curve. The Kollsnes processing facility was also scheduled to return online today, following maintenance which should result in a further improvement in supply levels. Power contracts shed from their price on Friday and followed the movement of their gas counterparts and weaker Brent. Wind generation was forecast to remain strong over the weekend which further contributed to losses on the prompt.
Market Open Market Open
The UK gas system remains oversupplied this morning with strong wind levels reducing demand for gas-fired generation. Norwegian imports into the UK have also increased by 6mcm as maintenance at Kollsnes has ended, although the Gulfaks field has suffered an unplanned outage. This has helped near-curve contracts record losses this morning, with weaker oil and coal contracts weighing on prices further out. Wind generation is expected to decrease tomorrow with temperatures also forecast to drop, offering support to the prompt this morning. The rest of the curve is generally bearish with falling gas weighing on near-curve contracts and another drop in Brent restricting any upward movement further along the curve.

Brent Summary

Brent 1st-nearby prices have dropped to around $46/b this morning as last week's EIA report continue to applies bearish pressure as it was revealed that US rig counts have risen.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 42.58ppt and £44.18/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 - 11-07-2016