|Near-curve gas prices were dictated by unplanned outages yesterday and recorded strong gains despite below average demand levels. Support was also provided by rising fuel costs, with carbon and coal displaying significant upward movement and Brent recovering from losses incurred in the previous session.
|Power prices recorded strong upward movement on Tuesday with prices at the back of the curve taking direction from rising carbon and coal markets. Near-curve prices followed their gas counterparts which were supported by supply constraints, with warm temperatures also resulting in higher cooling demand.
|Day-Ahead gas has decreased this morning as the system is 25mcm long due to low demand levels and improved flows via the Langeled pipeline. Warm weather is expected to continue over the next 10 days and healthier renewables should weigh on CCGT demand, resulting in losses across the near-curve. Further out, prices have followed bearish coal and carbon markets.
|Healthy solar power has helped to weigh on the prompt this morning, helping the UK cope with increased cooling demand at a time when wind levels are quite low. The losses have filtered through to the rest of near-curve as gas prices have eased, while weaker fuel markets have weighed on contracts at the back of the curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Fundamentals are little changed from yesterday and Brent has recorded a small gain to trade close to $79.6/b, the political situation in Venezuela, tensions in Iran and OPEC production cuts continue to provide support.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 58.33ppt and £56.98/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
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