23rd May 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Higher storage injections supported near-curve prices on Friday. Stronger oil prices supported the gas far-curve as the US Dollar weakened slightly. Prices were relatively high on Friday and over the weekend amid tight conditions in the market. Curve prices were supported as fuel prices showed resistance.
Market Open Market Open
Gas prices have dropped this morning amid an oversupplied system. Four Qatari LNG tankers are due to arrive in the UK this week, which is likely to maintain strong send-out at UK terminals. Heating demand could be higher today amid cooler temperatures, which are expected to rise later in the week. Far-curve prices are expected to fall as they track weaker oil prices. Power prices have fallen this morning, tracking the gas curve. Brent oil is expected to retrace back some of the previous gains. EU Parliament discussions on amendments to the EU ETS reform on Tuesday, and the delayed release of the main committee amendments on Friday could move prices up this week.

Brent Summary
Brent 1st-nearby prices have fallen following Friday's strengthening and seen a decrease of over $1/b to trade at $48.16/b this morning. This bearish outlook could be impacted by concerns around global production 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 34.48ppt and £37.34/MWh, respectively.

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

'Click to enlarge graph'

Energy Price Graph - 23-05-2016