21st June 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved down on Wednesday as coal contracts weakened and improved renewable power reduced reliance on gas-fired generation. Outages continued to restrict Norwegian flows into the UK but the system remained oversupplied due to low demand and a halt in exports. The power curve tracked the movement of gas yesterday, with a healthy wind generation forecast for today weighing on the prompt. The rest of the near curve was pressured down by a long gas system, while the back of the curve was dictated by a drop in coal.
Market Open Market Open
Gas prices display further losses this morning as the system has opened long once again and oil prices are on the decline as it is unlikely an agreement will be reached in tomorrow’s OPEC meeting. In terms of supply, demand levels are almost unchanged from yesterday, storage facilities are injecting at 14mcm and Langeled flows are around 14mcm due to on-going outages at Kristin and Kollsnes which have taken 10.2mcm offline. Wind power is expected to decrease tomorrow, helping the prompt climb slightly higher, although improved solar availability has offered resistance. However, the rest of the curve is bearish with direction coming from weaker gas, coal and oil markets.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent 1st-nearby prices display a strong loss this morning and trade at $74/b as statements released in Iran were in favour of increasing production levels, with a rise in US stock levels also offering support. The next meeting between OPEC members is scheduled for tomorrow and strong price movements are possible.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 54.80ppt and £53.56/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 - 21-06-2018

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