11th November 2015 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Residential demand and gas-fired power generation in the UK was low yesterday, resulting in an oversupplied system and a decrease in prices. Oil prices also weakened and overall supply levels were comfortable as bearish movement was displayed throughout the session. The UK gas system is 14mcm long this morning which has led to sizeable losses across the curve with further downward pressure coming from a mild weather forecast. Meanwhile, LNG send-outs have climbed from 8mcm to 42mcm with a delivery expected from Qatar on Friday.
Market Open Market Open
Power contracts were largely dictated by weaker gas and Brent yesterday with further influence coming from above average temperatures. The prompt recorded a significant loss on the back of a high wind generation forecast and was the session's biggest mover. Wind generation remains very healthy this morning and is expected to peak at around 5.4MW before falling to around 3MW tomorrow. Healthy renewables and falling gas have helped near-curve contracts move down, while losses on the far-curve are less prominent due to stronger coal prices.

Brent Summary

Brent 1st-nearby prices are rather stable at present and trade at around $47.3/b, prices remain low as US oil stocks are on the rise and Asia continues to report weak economic data.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 35.90ppt and £38.65/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 - 11-11-2015