Spot power prices have displayed small losses this morning as demand levels are comfortable, with temperatures around the seasonal norm. However, renewable generation is rather weak and a number of outages occurred at thermal facilities over the weekend which has provided some support. Gas prices have moved down this morning despite weaker Norwegian flows as a result of maintenance, instead prices have been pressured down by healthy LNG send-outs. 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 recorded an increase on Friday with Norwegian imports expected to plummet due to scheduled maintenance; flows are expected to be reduced by 38.5mcm/day for the next 10 days. The prompt strengthened on the back of increased demand, with levels 36mcm higher than they were on Thursday, although upward movement on the rest of the near-curve was restricted by an expected rise in LNG send-outs. Power prices displayed little movement on Friday with weaker Brent offsetting the effects of rising carbon emission certificates on the far-curve. Lower wind generation helped to support the Day-Ahead contract, while Front-Month contracts ended the session unchanged.
How did the energy markets open?
Most gas prices have opened at a discount this morning as healthy LNG send-outs have helped to counter the drop in Norwegian supply. Three LNG deliveries are expected to arrive at South Hook this week, while weaker Brent provided an additional bearish factor. Power prices have followed the movement of gas and have registered small losses this morning. Improved solar generation has made up for weak wind production, while warmer weather has reduced demand.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 42.32ppt and £42.43/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 1st-nearby prices continue to decrease and remain below $49/b with strong production in OPEC countries and an increase in US rig counts providing support.