24th May 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
The sharp rise in Norwegian flows, while demand was weaker than expected, pushed spot and near-curve prices lower yesterday. The fall in oil prices provided additional bearish pressure. Power prices remained supported yesterday, impacted by low levels of solar power generation and planned and unplanned outages.
Market Open Market Open
Fundamentals are reversing this morning, with higher UK gas demand and lower Norwegian supply tightening the system. Weaker oil prices could limit any gains seen on the far-curve as the US Dollar strengthened. The front of the power curve saw some rises this morning, possibly due to increased power generation and a short Gas system, limiting supply. Curve prices are tracking the slide in fuel prices, while wind generation is expected to be lower than forecast, and temperatures will also be milder.

Brent Summary
Brent 1st-nearby prices have continued to fall with a further decrease of $0.20/b to trade at $47.94/b this morning. US Brent Crude storage levels have reduced, along with exports from Iraq's Southern Oil Fields.

1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 34.02ppt and £37/MWh, respectively.

Today's prices can also be found in an easy to read table on our 'current UK energy price' page.

'click to enlarge graph'

Energy Price Graph - 24-05-2016