|Market Close||Market Close|
|An unplanned outage in Norway is expected to limit capacity until October, resulting in a rise in gas prices yesterday (read more here). Above average temperatures weighed on demand levels but this current warm spell is expected to be short-lived. Further out, prices continued to move higher with direction coming from rising Brent.||Renewable power was set to decrease today which saw the prompt climb higher, while the rest of the curve tracked their bullish gas counterparts, with further support provided the expected drop in temperatures next week. Meanwhile, stronger fuel markets continued to apply upward pressure to prices at the back of the curve.|
|Market Open||Market Open|
|The system has opened 20mcm short this morning following an increase in demand and outages in Norway. Demand remains below the seasonal norm due to warm weather but temperatures are set to revert back to the seasonal norm next week. This higher demand forecast and current undersupply has contributed to gains across the near-curve, while bullish oil and a weaker Pound has offered support to the back of the curve.||Warm weather is expected to continue at the weekend, while healthy renewables are forecast for the start of next week, helping the prompt record a loss this morning. However, bearish movement on the rest of the curve has been restricted by a rising gas market, in addition to a drop in the Pound and high oil prices.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent remains above $74/b this morning with OPEC officials scheduled to meet in Jeddah today. No new policies are expected to be confirmed but traders remain optimistic in regards to an extension of production cuts.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved higher – closing at 50.30ppt and £50.18/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
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