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

Gas Power
Market Close Market Close
Movement on the gas curve varied on Wednesday as supply levels weakened in the afternoon and residential demand has increased due to a spell of cooler weather. However, milder temperatures are expected to return over the weekend which limited some of the upward movement. The sentiment further along the curve was generally bearish with oil prices displaying a drop. Most contracts lifted across the power curve yesterday as the Pound fell to its lowest point against the Euro since the end of 2014. Some monthly contracts managed to move down due to an improved weather and wind generation forecast, while weaker Brent helped to limit some of the gains further along the curve.
Market Open Market Open
Norwegian gas flows have been rerouted to Germany and Holland this morning which has limited supply into the UK. Despite this drop the system remains close to balance as UKCS production has increased and an improved wind generation forecast should reduce the need for gas-fired power generation, helping to weigh on the near-curve. The power curve is generally stable this morning with an expected rise in wind production and a lower demand outlook over the Easter weekend helping to offset the effects of this short term drop in temperature. Meanwhile, Brent has settled down following a large decrease yesterday afternoon and has had little effect on the far-curve.

Brent Summary

Brent 1st-nearby prices have fallen to around $40.2/b as US Crude oil stocks have displayed a significant and unexpected increase, resulting in a drop of almost $1.4/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 30.68ppt and £35.43/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 - 24-03-2016