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

Gas Power
Market Close Market Close
The majority of gas contracts moved down on Wednesday despite bullish pressure coming from the power market. A drop in coal helped to weigh on some prices, while an undersupplied gas system, due to a rise in demand continued to offer support. Norwegian imports into the UK were also lower, while the LNG outlook remains weak. Forced safety tests at a number of EDF's nuclear units have caused uncertainty in regards to supply levels over the winter period, resulting in significant upward movement on the power market yesterday. Renewable generation also remained low which led to a rise in expensive gas-fired power generation.
Market Open Market Open
Temperatures for next week were revised slightly higher last night which has helped contracts on the near-curve move down this morning. However, the UK gas system remains 13mcm short, helping the prompt add to its price. Meanwhile, APi2 coal has weakened and oil prices are stable, resulting in minimal movement on the far-curve. The power curve displays numerous losses this morning with direction coming from weaker fuel prices. However, the downward movement did little to erase the strong gains which were recorded in the previous two sessions, on the back of scheduled outages at French nuclear reactors.

Brent Summary

Brent 1st-nearby prices are stable this morning and are unchanged from yesterday's opening price. Prices increased yesterday following the release of the latest EIA report but the gains were erased overnight.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a loss - closing at 46.10ppt and £47.58/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 - 20-10-2016

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