18th April 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
The gas curve displayed very little movement on Friday as traders were reluctant to commit ahead of Sunday's meeting between OPEC members and Russia in regards to a potential freeze deal for oil. Contracts on the near-curve were slightly supported by a short UK gas system as the outage at the Kollsnes processing facility remained unresolved, reducing Norwegian flows into the UK. Near curve power prices posted small gains on Friday as cooler temperatures were expected for the start of this week which should lead to a rise in consumption. An improved wind generation forecast restricted upward movement on the prompt somewhat, while weaker Brent helped to weigh on far-curve contracts.
Market Open Market Open
Gas prices on the far-curve display losses this morning as oil producers failed to come to an agreement in yesterday's meeting in Doha, resulting in falling oil prices. Elsewhere, fundamentals in the UK were generally stable with Norwegian flows returning to normal and temperatures sitting around the seasonal norm; movement on the near-curve was minimal as a result. The majority of power contracts have recorded losses this morning with direction coming from the weaker gas and oil markets. Wind generation is set to decrease tomorrow, while temperatures will be slightly below the seasonal norm, offering support to the prompt which was one of the few exceptions to the downward trend.

Brent Summary

Brent 1st-nearby prices display strong losses this morning as yesterday's meeting in Doha ended with no conclusion. However, the effects of a deal not being reached were limited by a worker's strike in Kuwait which has reduced output from the country.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 30.75ppt and £34.20/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 - 18-04-2016