Spot power prices gained support yesterday from reduced wind generation over the coming days. The power market continues to remain tight today meaning generation from gas-fired power stations has increased to compensate for the lack of nuclear and renewable availability.
Despite the tight supply picture gas prices recorded losses yesterday as Norwegian outages were expected to come to an end today. Yesterday's drop is expected to lead to a technical rebound in the next few days.
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?
Gas prices decreased slightly yesterday as Norwegian outages were forecast to be back online for today's session. The impact of reduced volume was offset slightly by increased UK domestic production.
Day-Ahead power made gains yesterday as wind generation is expected to decrease over the next few days. Further out on the curve, there was little movement with only slight gains of £0.10/MWh being recorded on Summer 16 contracts.
How did the energy markets open?
Norwegian supply has increased this morning meaning the European gas system is more comfortable. Temperatures are forecast to drop over the weekend which could result in higher demand. Oil prices may provide some support this morning, but the overall outlook for the day is set to be bearish.
There has been little movement across the curve this morning as fundamentals remain unchanged from yesterday's session. Reduced power generation from renewable and nuclear sources has meant gas-fired generation has increased today. As with the gas, oil prices are expected to offer some support to the power curve today.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased slightly & commercial electricity remained constant - closing at 41.04ppt and £41.90/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 Price
Brent 1st-nearby prices rebounded slightly yesterday, gaining $0.5/b. Oil prices are expected to be supported today by macroeconomic data coming out of Europe and the US.