11th October 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas prices were volatile once again yesterday, pressured by an upward revision in temperature forecasts for next week and strong flows from Norway. Rising oil prices also offered support. Curve contracts remained negative at the close, while spot prices showed some resilience amid short-term lower temperature forecasts. The power curve mainly tracked changes seen on the gas curve yesterday, while front-month contracts saw a downturn correction. Weaker coal and Brent prices saw losses continue on the far-curve.
Market Open Market Open
The UK system is short this morning, while Norwegian exports are constrained by a set of three unplanned outages expected to last up to 24 hours. Nevertheless, temperatures are still forecast to increase into next week, which is bearish for prompt and near-curve prices today. Steady coal and oil prices could limit downside in curve contracts in the short term. Prompt markets are not as tight this week due to warmer weather, despite low wind output forecast for next week. Near-curve prices remain supported amid the lack of significant improvement of spot fundamentals.

Brent Summary

Brent 1st-nearby prices increased throughout Monday amid a likely deal to cut production, while Russia are due to meet OPEC counterparts. Despite a slight fall this morning, prices hold close to their new one-year highs.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 44.15ppt and £45.79/MWh, respectively.

Today's prices can also be found in an easy to read table on our 'current UK energy price'  page.

Click to enlarge graph

Energy Price Graph - 11-10-16

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