The Tihange-1 nuclear reactor is due to remain offline until the end of September following an unplanned outage yesterday. Power systems are expected to be tight tomorrow as a result of this outage, a decrease in wind production and also maintenance on French nuclear plants.
Gas prices continued their downward trend yesterday on the back of the Kollsnes processing facility coming back online. Spot prices continue to shed value this morning as supply remains strong.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
How did the energy markets close?
Gas prices fell yesterday on the back of expected Norwegian supply gains which are anticipated to provide bearish sentiment for the remainder of the week. The UK system remained oversupplied throughout Monday's session.
Power prices continued their downward trend on Monday, as the strengthening of the Pound against the Euro weighed on the near curve. Further losses were limited by colder weather forecasts for this week.
How did the energy markets open?
Gas prices displayed losses this morning as an additional 39mcm/day capacity becomes available from the completion of the Vesterled pipeline maintenance. Despite a strong supply picture, higher demand due to colder weather forecasts may tighten the European gas system.
The majority of the power curve was subject to bearish pressure yesterday, with losses reaching £0.70/MWh on Q4-15 contracts. Losses were limited by colder temperature forecasts for this week. Wind production is expected to increase on Thursday but will be restricted until then.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 40.93ppt and £41.80/MWh, respectively. This can be seen in the graph below.
Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.
Latest Brent Crude Price
After gaining approximately 3% during yesterday's session, Brent 1st-nearby prices are currently trading around $46/b. Markets remain hesitant this morning with no real direction - the main influence is expected to be the WTI contract expiration this evening.