20th January 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Near-curve gas prices were pushed higher yesterday by high demand levels and a drop in Norwegian supply. The rest of the curve displayed mixed movement with a weak oil market offset by a rise in the Euro against the Pound. Above average temperatures have been forecast to return to the UK before the end of the month which has provided bearish pressure across the curve this morning. The UK gas system is also long despite the ongoing outage at the Oseberg field and strong residential demand.
Market Open Market Open
Day-Ahead power decreased yesterday as temperatures are expected to improve in the coming weeks, helping the prompt to shed around £1.1/MWh from its price. Meanwhile, stable Brent and stronger coal contracts helped contracts on the far-curve move higher; with further upward pressure coming from rising gas. The prompt has opened at a significant discount this morning as wind generation is expected to climb to around 4.5GW. The rest of the curve has followed the downward movement of gas and Brent, with losses displayed across the board.

Brent Summary

Brent 1st-nearby prices have decreased once again this morning and have fallen below $28/b, with the recent IEA monthly report showing strong oversupply, while the Asian markets also remain weak.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 30.05ppt and £34.10/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 - 20-01-2016