16th June 2015 | Posted by: Daniel Birkett | Market Analysis

Spot power prices have been slightly supported by outages at thermal power facilities and reduced wind generation, although a warmer weather outlook has helped the majority of prices to decrease. Gas prices moved higher yesterday afternoon but failed to recover from the morning's losses with support coming from an outage at St Fergus. The UK gas system remains short this morning as Langeled and BBL flows are reduced and demand levels are slightly higher, resulting in some upward movement. 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 decreased yesterday as supply levels were generally healthy despite an unplanned outage at the St Fergus entry point, which will reduce flows into the UK by 6mcm for the next 16 days. Elsewhere, output via South Hook rose to 29mcm and Dutch imports climbed to 15mcm, adding to a comfortable supply picture. Power prices moved down as yesterday's session progressed, as the Dungeness B nuclear power plant was expected to begin refuelling today. Contracts tracked the movement of gas throughout the day, with early morning gains caused by weaker wind generation.

How did the energy markets open?

Gas consumption is expected to decline throughout the week due to warmer temperatures and is forecast to fall to 176mcm on Friday. However, that figure is still 10mcm above the seasonal norm as a result of higher storage injections. A comfortable supply outlook has helped most contracts to decrease this morning although stronger Brent has offered some upward pressure. Wind generation was forecast to rise to 2.9GW today, compared to 1.4GW yesterday with another rise expected tomorrow, helping Day-Ahead power to fall by over £2/MWh. The rest of the curve followed the movement of gas and most contracts have opened at a discount.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 46.00ppt and £44.13/MWh, respectively. This can be seen in the graph below.

energy prices                               

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 decreased yesterday but have displayed a small rebound this morning to climb back above $64/b. A hurricane warning in Texas has provided support as oil production in the state could be affected.