16th January 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Two unplanned outages restricted export capacity in Norway on Friday which contributed to a volatile European market but UK gas prices moved down as traders cashed in on profits following strong gains at the start of the week. Further out, contracts were also pressured down by weaker coal and oil markets. The majority of power contracts shed from their price on Friday with an upward revision in temperatures for this week and stronger wind generation over the weekend helping to pressure down prompt prices. Further bearish sentiment was provided by losses on the gas and oil markets.
Market Open Market Open
Temperatures across Europe have been revised higher and are expected to be slightly above average or around the seasonal norm; this helped contracts on the near-curve move down this morning. Outages in Norway have now been resolved but the Pound has weakened against the Euro once again; limiting some of the losses on the curve. Movement at the front of the power curve is largely bearish this morning as temperatures are milder than initially forecast and wind generation is expected to improve. Further decreases on the gas and oil market have also transferred to power, with a weakening French market also a factor.

Brent Summary

Brent 1st-nearby prices moved down on Friday but have stabilised this morning at around $55.4/b. A rise in US output and a weaker Dollar helped Brent decrease at the end of last week but an official statement from Saudi Arabia in regards to production cuts has helped to restrict the losses.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher - closing at 48.45ppt and £48.40/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 - 16-01-2017

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