18th September 2015 | Posted by: Daniel Birkett | Market Analysis

Spot power prices are expected to decrease during today's session as European nuclear availability has improved and the gas market has weakened. However, prices could increase next week as colder weather is expected to hit the UK after the weekend and wind generation is set to decrease.

Gas prices moved down yesterday on the back of weaker demand levels and falling Brent. Prices remain bearish this morning as maintenance at the Kollsnes processing facility in Norway is scheduled to end tomorrow, improving already comfortable supply levels.

Today's prices can also be found in an easy to read table on our 'current UK energy price' page.

How did the energy markets close?

The majority of gas prices recorded a loss by the end of yesterday's session as demand levels eased down, although the gas system remained short. Consumption was 19mcm lower than Wednesday's levels but colder weather kept residential demand relatively high. Meanwhile, LNG output was healthy which helped to weigh on the Day-Ahead contract.

Power prices displayed a similar trend to gas, with bearish oil also helping contracts record a loss. However, downward movement on the prompt was slightly restricted by a drop in wind generation.

How did the energy markets open?

Gas prices have opened lower this morning due to weaker industrial demand, while a warmer weather forecast for the weekend should reduce residential demand. Oil prices have also moved down which has provided extra downward pressure on the far-curve.

Most power contracts followed gas this morning and have opened at a discount, with an expected rise in temperatures also a factor, as below average consumption is forecast for this weekend. Elsewhere, maintenance is scheduled to begin at the Dungeness nuclear plant tonight which will last until the end of September.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 41.65ppt and £42.13/MWh, respectively. This can be seen in the graph below.

energy prices

Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.

Latest Brent Crude Price

Brent 1st-nearby prices have decreased overnight with no obvious bullish factors able to offer support, instead prices were dictated by the overall economic outlook and on-going global oversupply concerns.