28th July 2014 | Posted by: Daniel Birkett | Industry News

Spot power prices decreased yesterday due to comfortable supply and low demand as a result of warm weather. Prices have moved higher this morning following a drop in nuclear availability due to two unplanned outages. The gas market also followed a bearish trend yesterday due to the healthy supply and demand picture. Today prices will largely be dictated by news from Ukraine and moved higher this morning, although a decrease could occur this afternoon as the UK gas system is well-supplied. 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?

Near-curve gas contracts moved down yesterday as a result of a long UK gas system and a stronger British Pound. However, some contracts further along the curve increased in price due to uncertainty in regards to the Ukrainian situation. The power curve followed its gas counterpart closely with gains ranging from £0.10/MWh for October-14 to £0.45/MWh for August-14. Further bullish support was also provided by stronger carbon contracts.

How did the energy markets open?

Supply levels remain healthy with storage levels around 90% and LNG send-outs are close to 40mcm. The ample supply and low demand picture has offset the on-going tensions in Eastern Europe although traders continue to keep an eye on the situation. Power prices showed little change this morning, Day-Ahead opened completely unchanged as wind generation isn't expected to decrease too much tomorrow. Nuclear availability will also hold its current levels and has added to the stable outlook.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 55.79ppt and £48.23/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 Prices

Brent 1st-nearby prices fell to $107.6/b yesterday, while WTI dropped to $104.5/b as geo-political tensions eased and support was provided by a stronger US Dollar.