17th August 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas contracts added to their price on Wednesday with unplanned outages continuing to impact supply levels; maintenance at the Gullfaks field in Norway reduced flows by 6.7mcm. Weaker oil did little to restrict upward movement further along the curve as coal strengthened significantly. The morning’s losses were erased in the afternoon following increases on the gas and coal markets. Renewable generation was set to improve today and milder temperatures should weigh on demand, restricting upward movement on the prompt.
Market Open Market Open
Gas prices continue to rise this morning despite a balanced gas system and falling Brent. Temperatures are expected to turn cooler over the next few days, while two Norwegian gas fields have suffered outages, however, flows via the Langeled pipeline are up by 5mcm. Meanwhile, nominations at South Hook are down despite a delivery scheduled for Saturday. Power prices display gains once again with news regarding French nuclear availability the main market driver. The French Nuclear Safety Authority want to impose safety reviews for two months which would cause delays, meaning 12 nuclear units are set to having downtime over the next few months. Comfortable wind generation has done little to curb the gains and solar power is stable.

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

Brent Summary

Brent 1st-nearby prices decreased yesterday following the release of the latest stocks report. US stocks have dropped but production levels continue to rise, with global oversupply the main market driver at present.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity sharply increased – closing at 44.99ppt and £45.94/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 - 17-08-2017

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