22nd January 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Price
Market Close Market Close
Gas prices decreased on Thursday as temperatures are set to turn milder over the next fortnight. However, an unplanned outage at a Dutch storage facility impacted BBL flows which limited the losses somewhat. Meanwhile a sharp rise in oil prices offered some support to far-curve contracts later in the session. The Euro continues to strengthen against the Pound and oil prices have displayed a healthy gain which has pushed far-curve contracts higher this morning. Overall movement on the curve is bullish but a long gas system and a mild weather forecast has restricted some of the upward movement.
Market Close Market Close
Power prices followed their gas counterparts yesterday with the expected drop in demand over the next few weeks the main market driver. An increase in wind generation also applied extra bearish pressure to the prompt. However, rising oil prices offset some of the losses further along the curve. The coal market is this morning's market driver, with a drop in supply pushing contracts higher across the power curve. Three coal facilities at Aberthaw, Rugeley and Longannet have suffered outages, resulting in higher gas-fired generation in the UK. China has also announced plans to close a huge number of coal mines to meet its carbon targets; cutting annual production in the country by 700 million tonnes over the next three years.

Brent Summary

Brent 1st-nearby prices posted a strong gain overnight to correct upwards from the 13-year low which was recorded earlier in the week. There is no clear bullish driver to cause this rise in prices and it is just a case of the market correcting itself to end Brent's rapid decline, temporarily.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 30.50ppt and £34.25/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 - 22-01-2016