Near-curve power prices moved down on Tuesday as a rise in wind and solar generation was forecast for today. A milder weather outlook also helped to weigh on some contracts as a drop in consumption is expected over the next few days. Gas prices initially opened higher yesterday but recorded losses later in the session as a request to stop production at the Groningen facility in Holland was rejected. A drop in temperatures is expected towards the end of April which has offered some support this morning, while Norwegian supply remains low; this afternoon's outlook is bullish as a result. Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
How did the energy markets close?
Price drops were displayed across the curve yesterday afternoon as concerns regarding a complete halt in production at the Groningen gas facility were eased as requests were dismissed by the Dutch Court. Demand levels in the UK were also rather low, helping towards a long UK gas system. The power market followed gas and continued production at Groningen helped to weigh on most contracts. Day-Ahead was the exception to the downward movement as a drop in wind generation pushed the prompt higher.
How did the energy markets open?
The effects of yesterday's announcement in Holland are still present this morning and gas contracts have opened at a further discount. A milder weather outlook for the next few days has also reduced demand, helping towards further losses on the near-curve. Power prices tracked their gas counterparts once again with lower consumption levels also assisting the bears. Stronger Brent offered some support on the far-curve but this wasn't enough to curb the losses completely.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 48.50ppt and £44.88/MWh, respectively. This can be seen in the graph below. Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.
Latest Brent Crude Price
Brent 1st-nearby prices have climbed higher overnight with bullish pressure coming from the recent EIA report; Brent currently trades at $59.09/b.