17th February 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Unplanned outages at facilities connected to the Langeled and UKCS pipelines reduced flows into the UK yesterday, tightening the system. A healthy LNG outlook helped to offset any bullish sentiment, while rising oil offered some upward pressure further along the curve. A rise in temperatures, wind levels and solar availability helped to weigh on the prompt yesterday, with the losses filtering through to the rest of the near curve as mild weather is expected to continue over the next fortnight.
Market Open Market Open
Gas prices have opened higher this morning due to the ongoing outages at Kårstø, Troll and Dvalin, while supply disruption in the US has also lifted Henry Hub prices. Despite the drop in demand from last week, the system opened 1mcm short this morning due to the reduction in pipeline flows. Mild weather and healthy renewable generation has helped power prices to decrease on the spot, although tighter gas supply offers some resistance. Further out, energy markets find some support from issues in the US with extremely cold weather causing major disruption.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent Crude displays only a minor gain this morning despite strong upward movement across global energy markets due to issues in the US, caused by cold weather. Some oil refineries have been temporarily closed, while 4 million homes were left without power in Texas.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a loss, closing at 46.32ppt and £55.94/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 - 17-02-2021

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