UK spot prices opened relatively steady this morning as concerns over a tight market due to restricted nuclear availability, 6GW, should be eased by the expected increase in wind production. The EU Commission have presented new reforms for carbon prices which are likely to increase carbon price volatility in the mid-term - a downward revision is still expected in the short term though.
There was mixed sentiment yesterday as NBP spot prices were pushed down by a more balanced UK system but supported by lower Norwegian imports. Improved weather forecasts mean wind generation is expected to increase, leaving a bearish outlook for spot prices today.
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?
UK gas prices remained steady yesterday as uncertainty over the Greek reforms left the market apprehensive. Demand from gas fuelled power stations remained high as wind output failed to exceed 1GW. Exports to Belgium added to the strong demand yesterday, though Linepack was stable at the end of the day as storage injection was minimal.
The UK power curve steadied yesterday after the downward trend seen on the far curve for the last two sessions. Front-Winter contracts recovered some value yesterday, after falling £0.5/MWh, due to gains in NGP gas prices. Gains were limited as the Pound reached a seven year high relative to the Euro yesterday.
How did the energy markets open?
UK Day-Ahead gas contracts dropped 0.25ppt this morning, with similar losses seen further out on the curve. Wind generation is expected to increase to 6GW by the end of today which is anticipated to reduce gas demand.
The UK power curve saw mixed sentiment this morning. Expectations of higher renewable generation helped Day-Ahead shed £2.30/MWh this morning. Further out on the curve there were small gains added to seasonal contracts. Warmer temperatures mean that peak demand is anticipated to fall today.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas and commercial electricity has increased slightly - closing at 44.85ppt and £43.78/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 Crude and WTI shed around $1.5/b yesterday as uncertainty over the extent and timeframe for the revitalisation of Iranian exports puts bearish pressure on the market. The main driver today is expected to be the European Central Bank talks on the Greek crisis.