20th November 2015 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed strong gains during Thursday's session as temperatures are set to drop over the weekend, which will lead to a significant rise in demand. Production cuts at Holland's largest gas facility also returned as a market driver later in the session. The UK gas system is oversupplied this morning following a sharp rise in supply which has offered some bearish pressure on the near-curve. Despite the forecast of a cold spell over the weekend, above average temperatures are expected to return next week which also helped towards erasing some of yesterday's gains.
Market Open Market Open
Power prices were dictated by rising gas yesterday, while an expected drop in temperatures and wind generation also pushed contracts higher. Winter-18 and Summer-19 were the exceptions to the upward movement and displayed losses of £0.65/MWh and £0.50/MWh, respectively. A significant drop in wind generation and a short-term surge in consumption has helped Day-Ahead power display extremely strong gains this morning. Most of the curve followed the movement of weaker gas and oil and displays a bearish trend, although a rise in coal prices has supported some far-curve contracts.

Brent Summary

Brent 1st-nearby prices are generally stable at present and posted a small loss overnight to trade at around $44.2/b this morning. The overall outlook remains weak and further losses are expected next week due to a low demand forecast.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 36.85ppt and £39.30/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 - 20-11-2015