18th April 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved down yesterday as warmer weather is expected for the rest of the week and improved wind power led to a decrease in CCGT demand. The system was slightly long despite weaker LNG send-outs and a number of outages in Europe. Further out, prices displayed minor losses as fuel markets were largely stable. Wind generation ramped up and healthy renewable power levels were expected to continue today, resulting in losses on the prompt and the rest of the near-curve on Tuesday. Meanwhile, the bullish trend recently seen on the coal market eased and Brent was stable throughout the session, contributing to some downward movement at the back of the curve.
Market Open Market Open
The system has opened almost 10mcm long due to lower demand, as a result of warm weather across the UK; demand levels currently sit 45mcm below the seasonal norm. Healthy renewable power has reduced CCGT demand, while Langeled flows have increased 8mcm day-on-day. However, the outage at Kollsnes has been extended till the 27th of April, cutting available capacity by 18.5mcm and limiting any bearish movement at the front of the curve. An expected drop in renewable generation tomorrow has supported the prompt this morning, although temperatures will remain above average, weighing on residential demand. Little direction was offered by the gas curve and the majority of near-curve contracts display a small loss. Further out, a drop in coal prices has resulted in losses, ignoring a rebound in oil.

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

Brent Summary

Brent has increased this morning following a slight reduction in US oil inventories and eased political tensions; Brent currently trades at $72.1/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased slightly – closing at 48.48ppt and £48.90/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 - 18-04-2018

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