13th June 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
An improvement in Norwegian imports into the UK led to a long gas system on Friday which helped to weigh on near-curve contracts. A slightly cooler weather forecast limited some downward movement but another drop in oil prices resulted in losses further along the curve. Power prices tracked the movement of gas and closed at a discount on Friday, with a drop in temperatures also reducing the use of air conditioning in the UK, thus lowering demand levels. Wind generation was also forecast to rise over the weekend which helped the Day-Ahead contract shed from it price, while weaker oil and coal weighed on far-curve prices.
Market Open Market Open
Norwegian flows continue to improve which has helped to balance systems across Europe this morning, resulting in bearish movement on the near gas curve. Temperatures remain around the seasonal norm, while falling Brent has led to further losses on the far-curve, with fundamentals generally unchanged from the end of last week. Wind generation in the UK still remains rather weak despite a small improvement but this has done little to limit the downward movement on prompt power contracts this morning. Contracts continue to follow the movement of falling gas, coal and oil, with a demand levels also lower compared to a week ago.

Brent Summary

Brent 1st-nearby prices decreased on Friday and have opened up at around $50.10/b this morning. Prices have reverted back to levels displayed at the start of last week with a stronger US Dollar and weak economic data from China providing bearish pressure.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 37.28ppt and £39.67/MWh, respectively.

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