Front-Month power prices climbed higher yesterday as colder temperatures are expected in March. Today power prices are expected to move down following a drop in carbon contracts and a weaker Euro and US Dollar. Gas prices increased yesterday as the UK gas system was slightly short for most of the day. Today temperatures in Europe are milder which has led to a decrease in demand and should weigh on the curve, resulting in a few contracts recording a loss. 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 gas curve saw numerous price increases yesterday with Day-Ahead recording the largest gain of 0.20ppt and Front-Season climbing 0.15ppt higher as Linepack was short for the majority of the session. The power curve displayed mixed movement yesterday as Front-Season added £0.40/MWh to its price and Day-Ahead fell by £0.10/MWh. A number of nuclear units returned online which helped push some contracts down while weaker APi2 coal also restricted any gains.
How did the energy markets open?
The gas curve displayed a bearish trend this morning with Day-ahead opening at a 0.70ppt discount. Linepack opened 12mcm long as Langeled flows improved slightly and two LNG deliveries are expected before the end of the month which also added downward pressure. Power prices followed their gas counterparts as the curve opened with a series of losses following a drop in carbon allowance contracts. Day-Ahead rallied £3.10/MWh higher as wind generation is expected to rise significantly tomorrow; weaker APi2 coal also helped contracts move down.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 62.00ppt and £49.75/MWh, respectively. This can be seen in the graph below.
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 Prices
Brent 1st-nearby prices rose by $1.28/b to reach $110.7/b while WTI sits above the $102.5/b mark, taking the Brent/ WTI spread to -$8/b. Prices increased on the back of stronger winter demand and supply issues in Middle East and South America.