25th July 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas contracts displayed mixed movement on Friday with weakening oil prices applying downward pressure on the far-curve. However, weak economic data coming out of the UK and another drop in the Pound helped to support prices at the front of the curve. Low Norwegian flows and reduced LNG-send-outs also tightened supply and contributed to the gains. Movement on the power curve was largely bullish on Friday with a rise in gas contracts in the afternoon and a slight drop in wind generation over the weekend helping towards the gains. However, a decrease in oil and coal prices helped to limit bullish movement on the far-curve.
Market Open Market Open
Norwegian imports are expected to remain low this week due to the on-going outage at the   which has been extended until the 8th of August; with further outages at the Kvitebjorn field and Karsto processing unit. These supply constraints have helped to lift prompt gas contracts this morning but a balanced system helped to restrict the upward movement. Further out, weakening oil prices helped to restrict the bulls and the overall outlook is stable. Power contracts have opened at a premium this morning with direction coming from gains on the gas market and a rise in coal prices. Temperatures are set to fall towards the seasonal norm this week which should limit demand, while wind generation will also remain healthy; restricting some of the upward movement.

Brent Summary

Brent 1st-nearby prices have recorded a small loss over the weekend, trading at around $46.65/b this morning. A stronger US Dollar, the on-going effects of the UK's vote to leave the EU and a rise in US oil inventories are the main factors behind the current bearish sentiment.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas was unchanged, while commercial electricity recorded a small gain - closing at 43.05ppt and £44.15/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 - 25-07-2016