12th June 2017 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas spot and near curve prices closed lower on Friday, on the back of easing concerns over Qatari LNG deliveries into the UK. One of the two cargoes that was re-routed on Thursday looked set to arrive at South Hook via the Cape of Good Hope in early July. Power prices also closed lower on Friday, despite a weakening pound throughout the day following the UK general election result.
Market Open Market Open
Gas prices have fallen this morning, on the back of reducing LNG supply risk and an easing demand. The NBP system has opened long. Temperatures are cool today, but expected to increase above seasonal normal levels for the rest of the week. Day ahead power prices have increased significantly this morning due to weak wind generation, while curve prices have fallen. Wind forecasts are indicating expected increases as low pressure affects northern regions. Solar production is expected to be relatively strong this week, adding a bearish factor to the curve.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent 1st-nearby prices are on a positive trend this morning after markets touched new monthly lows at the end of last week. Some operators believe prices could have now bottomed out, and it seems the market may start to rally.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas and electricity decreased – closing at 42.90ppt and £42.95/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 - 12-06-2017

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