19th February 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas contracts displayed an upward trend yesterday morning, although a drop in Brent later in the session helped to cut some of the gains. The UK gas system also moved long in the afternoon which reduced demand and helped to weigh on near-curve prices. Power contracts posted gains on Thursday as overall fundamentals remained supportive. Most contracts followed the upward movement of their gas counterparts as well as a below average weather forecast which will lead to increased demand.
Market Open Market Open
Temperatures in the UK are expected to remain below the seasonal norm at the start of March which has resulted in some bullish movement on the gas curve. However, a milder weather forecast for the weekend has helped the prompt shed from its price, with help from an oversupplied system. The power curve has displayed further increases this morning although healthy generation levels have offered some resistance. Prices are supported by a stronger gas market, while temperatures also remain below average in the UK, leading to high levels of consumption.

Brent Summary

Brent 1st-nearby prices decreased on Thursday afternoon following the release of the US inventories report; prices currently trade at around $34.4/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity displayed a gain - closing at 30.55ppt and £34.72/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 - 19-02-2016