23rd September 2013 | Posted by: Daniel Birkett | Market Analysis

Spot prices are lower than they were on Friday thanks to an unexpected increase in wind production although prices could go up if supply levels remain tight. In terms of gas, the decrease in Langeled flows has led to a tight UK system and extra storage withdrawals were required as a result; NBP prices moved higher on the back of this. 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?

NBP contracts went up following the drop in Langeled flows although gains were limited following the return of the Easington Rough facility. Further along the curve contracts also closed at a premium as the British Pound weakened against the Euro. Storage levels currently stand at 62% which led to a reduction in South Hook send outs. Day-Ahead power made a loss following a drop in demand due to the slightly warmer weather, higher nuclear generation also led to an improved supply outlook. Seasonal contracts took influence from higher gas prices and a weaker wider fuels complex.

How did the energy markets open?

Day-Ahead gas fell by 0.25ppt to open at 66.25ppt at the start of today's session, receiving support from a long system following a drop in demand. Front-Month added 0.05ppt to its price and took influence from climbing Front-Month Brent. Winter-14 also went up by 0.15ppt as numerous facilities have had maintenance scheduled for September 2014. On the power curve Day-Ahead registered a loss of £1.10/MWh while the rest of the curve saw only minor movement. Front-Month added £0.15/MWh to its price on the back of stronger Brent prices while carbon contracts showed almost no change.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity made a loss - closing at 66.45ppt and £51.50/MWh, respectively. This can be seen in the graph below. 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 by $3.56/b over the course of last week and held a price of around $109/b by the end of Friday's session. Meanwhile WTI fell by $1.72/b and the current Brent/ WTI spread stands at -$4.5/b this morning.