Spot power prices weakened further yesterday as solar production is expected to reach high levels today and demand levels are very low. Further price-drops can be expected later today as the coal market looks set to turn bearish. Healthy supply levels and falling demand helped to weigh on gas prices yesterday and this downward movement should continue today as UK LDZ demand has fallen by 10mcm on the back of above average temperatures. 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?
Gas prices closed yesterday's session lower as Day-Ahead fell by 0.60ppt and Front-Month decreased by 0.40ppt due to comfortable supply. June-14 closed below 45ppt and trades around 2ppt lower than July-14 with influence coming from scheduled maintenance during summer. The power curve was also bearish with Day-Ahead dropping by £0.35/MWh, while July-14 was the biggest mover and closed £0.45/MWh down. Wind generation in the UK remains low while numerous coal-fired power plants have experienced outages; instead low demand levels drove the market.
How did the energy markets open?
The UK gas system was balanced at the start of today's session as gas flows remain stable from Thursday. Improved Dutch imports have offset the effect of lower Langeled flows, while LNG send outs are strong. Gas storage levels stand at 67% and the warm weather forecast has resulted in price-drops on the near-curve. Day-Ahead power closed at a £1.20/MWh discount due to an above average weather forecast for the weekend. However most contracts opened higher due to an EU carbon allowance sell off on Thursday.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas made a small gain while commercial electricity decreased slightly - closing at 58.80ppt and £49.98/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 Prices
Brent 1st-nearby prices fell by $1/b and trade around $109.2/b this morning as the Ukrainian situation seems to have settled somewhat; Meanwhile, WTI stands at around $102/b.