20th May 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Spot and near-curve prices continued to weaken yesterday on the back of lower demand and comfortable supply.   The ongoing weakening of the Euro against the Pound also contributed to the downturn. Prompt prices softened yesterday but remained fairly high for this time of year and compared to previous weeks.   Curve prices were also bearish as oil prices dropped sharply after speculation that the US Fed would increase rates in June.
Market Open Market Open
The system has opened long this morning, and Rough is currently injecting.   Higher temperatures should keep the gas system balanced, while stronger oil prices could support prices on the far-curve amid global supply concerns. Spot conditions have been particularly tight this week but there are signs of improvement.   Bearish movement on power prices could be more limited today as Brent oil prices strengthen slightly.   Wind generation is forecast to rise over the weekend, along with the warmer weather.

Brent Summary

Brent 1st-nearby prices have countered yesterday's losses and seen an increase of over $1/b to trade at $49.24/b this morning.   Oil prices remain supported as the US dollar weakens slightly.

1-year forward prices                                                          

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 34.55ppt and £37.55/MWh, respectively.

Today's prices can also be found in an easy to read table on our 'current UK energy price' page.

'Click to enlarge graph'Energy Price Graph - 20-05-2016