23rd April 2015 | Posted by: Daniel Birkett | Market Analysis

Spot power prices have moved down today as nuclear availability in France is much improved. However, next week's outlook is slightly bullish as wind generation levels have been revised down and cooler temperatures are expected over the weekend and the start of the week. Gas prices displayed losses yesterday as low demand levels and strong LNG supply supported the bears. Fundamentals are generally unchanged today and the gas curve has continued on its downward trajectory this morning. 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 displayed a series of losses on Wednesday as weak demand levels, combined with healthy LNG supply helped towards a long UK gas system; a stronger British Pound also helped to weigh on some contracts. Power contracts were dictated by their gas counterparts and downward movement was recorded across the curve. A stronger British Pound also reduced the cost of importing gas from Europe and also helped towards the losses.

How did the energy markets open?

Gas prices have maintained a bearish trend this morning with additional LNG deliveries expected over the weekend and with the British Pound strengthening further. Norwegian gas flows remain unchanged as scheduled maintenance at facilities will last until late next week. The power curve has opened at a discount this morning although a weaker wind generation forecast has restricted some of the losses, as has a colder weather forecast for next week. The Day-Ahead contract has decreased by £0.85/MWh on the back of improved supply levels.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 46.70ppt and £44.55/MWh, respectively. This can be seen in the graph below. energy prices                                         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

Brent 1st-nearby prices have moved $0.30/b higher today and now trade at $62.38/b. Support comes from Saudi Arabia's false promise to cease the airstrikes in Yemen, with additional bullish pressure coming from another decline in US oil production.