14th July 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
The majority of gas contracts shed from their price on Wednesday as Brent decreased throughout the session following gains on Tuesday. The prompt was one of the exceptions to the downward movement as the UK gas system was short due to a rise in demand and weak Norwegian imports. Power contracts tracked the gas market yesterday and the majority of the session's movement was bearish. Weakening oil was the main market driver during Wednesday's session and was the cause behind the drop in gas prices, offsetting the effects of an increase in APi2 coal.
Market Open Market Open
The UK gas system has opened oversupplied this morning as send-outs have increased following the arrival of an LNG delivery yesterday morning. Near-curve contracts have been pressured down further by a warmer weather outlook which should reduce demand levels across Europe. Most contracts have opened the session at a discount with direction coming from another drop in gas and oil, with coal also recording a loss. Meanwhile, there is mixed sentiment in terms of fundamentals this morning as demand levels are expected to decrease over the coming days but wind generation is also set to drop, cancelling each other out in terms of influencing movement on the curve.

Brent Summary

Brent 1st-nearby prices have recorded a loss of over $1/b and trade at around $46.7/b this morning. Bullish sentiment was provided by recent reports which displayed an increase in US oil output.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas was unchanged, while commercial electricity decreased - closing at 42.00ppt and £43.34/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 - 14-07-2016