22nd October 2015 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
The end of maintenance in Norway resulted in higher imports into the UK yesterday morning but supply levels dropped in the afternoon due to unplanned outages, which led to a rebound in prices. However, weaker demand and high LNG send-outs helped contracts correct downward before the end of the session, with weaker Brent also weighing on the far-curve. Supply levels in the UK are currently comfortable with Norwegian flows back to normal following yesterday's outages; this has helped near-curve contracts open at a further discount. Meanwhile, temperatures are expected to remain around the seasonal norm for the rest of the month which has provided additional bearish pressure.
Market Open Market Open
Power prices recorded losses yesterday as fundamentals were similar to previous sessions and fuel prices continued to weaken. A milder weather outlook and a strong wind generation forecast helped to weigh on the prompt and other near-curve prices, while falling Brent resulted in downward movement on the far-curve. Day-Ahead power is unchanged this morning as wind generation is set to fall below 1GW tomorrow, a weaker demand outlook and falling gas helped to restrict any gains. Far-curve contracts continue to move down on the back of weakening Brent, while coal prices have also displayed a small drop.

Brent Summary

Brent 1st-nearby prices moved down for the third successive session yesterday and currently trade just above $48/b. The recent EIA report displayed bearish factors such as a rise in stocks and stable production, helping Brent shed from its price.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 40.13ppt and £41.43/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 - 22-10-2015