23rd January 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
A cold weather forecast for this week helped to support gas contracts on Friday, with rising coal also a contributing factor. The Day-Ahead contract was pushed higher by strong demand, with weak wind levels and lower nuclear availability in France resulting in an increased reliance on CCGT power generation; storage levels across Europe were also limited. Higher consumption and weaker generation levels resulted in price increases on the power curve on Friday. Rising coal and oil contracts helped far-curve contracts to strengthen, while concerns regarding French nuclear supply were also a factor.
Market Open Market Open
Another downward revision in temperatures for the rest of the month has provided further upward pressure this morning and gains can be observed across the near gas curve. Wind generation will also remain low this week and the UK gas system has opened short due to above average demand and some supply constraints. Temperatures are set to remain below average this week and wind generation is not expected to increase significantly, resulting in a bullish outlook for today's session. Increases on the gas market have also supported their power counterparts, while APi2 coal has rallied higher.

Brent Summary

Brent 1st-nearby prices have moved down this morning following strong gains on Friday and now trade at $55.33/b. A compliance meeting in Vienna helped to provide support to the market as production has been reduced in some nations, however, the rig count in the US continues to increase.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 49.10ppt and £48.33/MWh, respectively.

Today's prices can also be found in an easy to read table on or 'current UK energy price' page.

Click graph to enlarge

energy price graph - 23-01-2017

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