|Gas prices displayed strong gains across the board yesterday, however, support was largely technical as traders tried to offload their short positions. Supply/ demand fundamentals were unchanged, while the broader energy complex only showed marginal changes.
|Power prices were pushed higher by stronger gas yesterday, with a rise in feedstocks also a contributing factor. Wind levels are expected to remain healthy over the coming days, although significantly down from the strong levels seen this weekend, while milder weather is forecast for the weekend and the start of next week.
|The UK gas system is undersupplied this morning but the majority of gas contracts are stable with comfortable flows and steady demand expected for the rest of the week. Meanwhile, a slight drop in coal and oil has offset bullish sentiment further along the curve.
|Power prices remain slightly bullish this morning, although gas and carbon provide little support. Oil and coal markets display a small downward correction, while milder weather should weigh on demand for the remainder of February. Today’s gains are thought to be a result of caution taken by traders as they assess their positions on the gas market.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display a loss this morning, halting the bullish trend seen in the last few sessions. Upward pressure has been provided by a delay in the resumption of oil activity in China.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 32.21ppt and £40.58/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
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