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

Gas Power
Market Close Market Close
High demand and rising commodities helped gas contracts to close higher on Friday, rounding off a largely bullish week on the UK gas market. Demand for power also offered additional strength to the front of the curve. A temporary uptick in wind levels was forecast over the weekend but these levels were set to fall again at the start of this week, continuing to put pressure on the gas system. Commodities also increased and this transferred to contracts across the power curve.
Market Open Market Open
Near curve gas prices have eased down this morning on the back of a milder weather forecast for the rest of the month and the conclusion of maintenance at North Sea facilities. However, carbon markets continue to climb higher, offering support to longer dated contracts. Wind generation remains low and this is expected to continue tomorrow, helping the prompt add to its price. A healthier outlook for gas supply helped to limit upward movement on the rest of the near curve, while the far curve was supported by bullish EUA carbon allowances.

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

Brent Summary

Brent Crude trades around $68.8/b this morning with on-going support provided by the crisis in India. Although the return of the Colonial Pipeline in the US prevented any strong upward movement over the weekend.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity posted a small gain, closing at 61.40ppt and £73.51/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 - 17-05-2021

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