24th February 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
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A cold weather forecast for the rest of the week continued to apply bullish pressure to the gas curve yesterday with most contracts displaying a gain. However, supply levels remained comfortable despite rising demand which helped to limit the upward movement, with weaker oil also weighing on the far-curve. Day-Ahead power displayed a strong increase yesterday due to low wind generation and rising consumption levels, with below average temperatures forecast until the end of the week. Most near-curve contracts followed their gas counterparts and moved higher although a drop in Brent resulted in losses further out.
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Gas demand has increased by 8mcm today but the UK gas system remains long following an increase in LNG send-outs, with five deliveries expected to arrive in the UK over the next two weeks. This has helped the majority of gas contracts to move down, with a milder weather forecast for next week and weaker Weaker gas and oil have helped to pressure down power contracts this morning, with weak wind production continuing to weigh on the prompt. However, the National Grid has readied some backup generation capacity as consumption could outweigh supply tomorrow.

Brent Summary

Brent 1st-nearby prices decreased overnight after showing very little movement on Tuesday, the bearish sentiment came from both Saudi Arabia and Iran, as the two nations ruled out any production cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity displayed a loss - closing at 30.53ppt and £34.63/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

energy price graph - 24-02-2016