18th May 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Norwegian supply increased yesterday as maintenance at numerous fields was completed, however, the UK gas system still remained tight, restricting any losses at the front of the curve. Oil and coal prices provided on-going support to contracts further along the curve, with a weaker LNG outlook also adding to the bullish sentiment. Power prices displayed only minor changes yesterday with minimal support provided by gas, coal and oil markets. Wind generation fell dramatically and will remain low until next week, while solar generation was also limited. Temperatures were revised slightly higher but this did little to weigh on the near-curve.
Market Open Market Open
Brent and coal prices are generally stable and have failed to have much impact on gas contracts this morning. Norwegian flows should be back to normal until early June, helping to offset a higher demand forecast for the rest of this week. Meanwhile, temperatures are set to drop to the seasonal norm and the UK gas system remains short, contributing to a stable-to-bullish outlook for today. Mixed movement can be observed across the power curve this morning as improved solar generation is expected over the weekend, weighing on prompt prices. Upward pressure has been provided by a weakening Pound and gains on the gas market, resulting in some increases on the far-curve.

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

Brent Summary

Brent 1st-nearby prices rebounded yesterday following the release of a bullish EIA report. This morning prices have recorded a small loss as global oversupply continues to provide bearish pressure but Brent remains above $52/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 42.79ppt and £42.30/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 - 18-05-2017

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