Spot power prices displayed some downward movement in Friday's afternoon session as weaker fuel prices and a stronger supply outlook helped to weigh on some contracts. Improved renewable generation and a mild weather forecast have also helped the bears prevail this morning with the majority of contracts recording a loss. Gas prices ended last week at a discount as warmer weather helped to reduce demand and LNG supply was healthy. Warm weather is set to continue this week which should keep demand levels low, Russian gas flows into Europe have also increased helping contracts to post further losses this morning. 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 displayed losses at the end of Friday's session as above average temperatures lessened UK demand. Improved supply levels resulted in higher LNG send-outs to Belgium with additional LNG deliveries expected to arrive in the UK over the weekend. The warmer weather forecast was also the main driver of the power curve with seasonal contracts continuing their downward momentum. The prompt was the exception to the losses as a drop in wind generation pushed the contract higher.
How did the energy markets open?
Warm weather is the main cause for this morning's price reductions as weaker demand is expected until the weekend at least. The LNG outlook also remains healthy, while Norwegian and Russian gas flows into Europe have also displayed an increase. UK temperatures are expected to rise above the seasonal average as the week progresses and consumption levels are expected to fall significantly as a result. This has helped prices decrease across the curve this morning with Day-Ahead recording a loss £0.95/MWh.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 47.33ppt and £45.13/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 Price
Brent 1st-nearby prices have displayed a sharp rise this morning as production at US oil rigs has been reduced even further which could result in low supply levels later in the year; Brent currently trades at $63.86/b.