26th May 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas prices were pushed higher yesterday, amid lower temperatures and a strong rebound in Brent oil prices. Norwegian flows increased and demand was expected to be lower on the back of forecasted higher temperatures. Curve prices tracked a small rebound in oil prices yesterday. Solar generation was limited and wind production was expected to fall below average levels.
Market Open Market Open
Fundamentals remain tight this morning with weak Norwegian flows making the system short, despite lower demand due to higher temperatures expected at the weekend. Spot and near-curve prices could maintain their bullish momentum. Far-curve prices could be supported by oil prices. Power prices have again opened higher this morning across the majority of the curve, in line with the majority of fuel prices. Day-ahead prices did however open lower amid forecasted stronger solar generation and weaker short-term demand. Cooling demand is expected to rise as we approach June.

Brent Summary
Brent 1st-nearby prices have seen an increase of over $0.80/b to trade at $49.38/b this morning. The strong decline in US inventories as well as the fall in output were the main factors behind this rise, while Coal and Carbon prices have been driven higher.

1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & electricity increased - closing at 34.70ppt and £37.60/MWh, respectively.

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

Click to enlarge graph

Energy Price Graph - 26-05-2016