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

Gas Power
Market Close Market Close
Gas prices increased by the end of yesterday's session as unscheduled maintenance took place at a gas field in Norway which reduced flows into the UK. It was also announced that withdrawals from the Bergermeer storage facility will be cut by 50% starting from today. Meanwhile, gas demand rose to 267mcm, 63mcm above the seasonal norm, however, strong LNG supply and a milder weather forecast helped to limit the gains. Demand levels are lower this morning which has helped to offset the effects of maintenance in Norway, while temperatures across Europe are set to improve over the weekend; helping to weigh on the majority of gas contracts today. The system is 4mcm long as LNG supply remains healthy and gas-fired power generation is reduced.
Market Open Market Open
Day-Ahead power fell by £1.35/MWh yesterday as wind generation levels were set to rise today and milder temperatures are expected over the coming days. The rest of the curve was generally stable with only minor changes in either direction. Rising wind and solar generation continues to weigh on the near-curve this morning; wind in particular is expected to double next week and reach a peak of 4.5GW. An increase in Brent has had little effect on contracts with most prices following weaker gas.

Brent Summary

Brent 1st-nearby prices display a gain of around $1.1/b this morning as US crude oil stocks are lower than previously thought, although a potential rise in Iranian output could result in losses over the weekend.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity posted a loss - closing at 42.12ppt and £40.65/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 - 16-10-2015