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

Gas Power
Market Close Market Close
Gas contracts displayed a drop yesterday afternoon as the market attempted to correct itself following strong support from a rise in commodity and equity shares in the previous session. A drop in Norwegian supply helped to lift near-curve contracts in the morning, while movement on oil contracts was minimal. Power contracts on the far-curve moved down towards the end of yesterday's session as the Pound continued to strengthen against the Euro and the Dollar, with further bearish pressure provided by a drop in coal prices. The front of the curve followed the movement of gas and also corrected downwards before the session's close.
Market Open Market Open
Demand levels have decreased this morning as temperatures across Europe are on the rise, however, downward movement on the near-curve is dependent on an increase in Norwegian imports. Further out, Brent continues to strengthen and has offered support to numerous contracts. Following healthy levels yesterday, solar power is weaker this morning which has resulted in gains on the near curve, with very little support coming from gas contracts. Further out, a drop in coal has limited some of the upward movement.

Brent Summary

Brent 1st-nearby prices stabilised yesterday afternoon but have posted gains overnight to climb above $51/b. The increase in price was a result of bullish API data ahead of today's EIA report.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 40.45ppt and £42.54/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 - 22-06-2016