26th September 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved higher on Friday on the back of outages in Norway, with planned maintenance at the Kollsnes facility scheduled for today, until the 30th of September; reducing flows by 46mcm. A long UK gas system failed to have much influence on prices as a weaker Pound provided additional support. Power contracts tracked movement on the gas curve on Friday although an improved renewable generation forecast for the weekend and a drop in industrial demand helped the prompt shed from its price. Meanwhile, seasonal contracts found support from a number of planned outages, while low levels of wind have been forecast for October.
Market Open Market Open
Norwegian flows are low this morning due to a combination of two new unplanned outages and scheduled maintenance, while Russian flows to Europe are also limited. The UK gas system remains oversupplied due to higher UKCS production which could weigh on the prompt later in the session, while Brent has also recorded a strong loss. Day-Ahead power has recorded a loss this morning with downward movement also evident on the rest of the near curve, with an improved wind generation forecast the main factor behind the bearish sentiment. The rest of the curve has been pushed higher by gains on the gas market, with planned maintenance still supporting seasonal contracts.

Brent Summary

Brent 1st-nearby prices display a strong loss this morning with some optimism amongst traders in regards to a deal being reached between OPEC members, with informal talks taking place in Algeria today until Wednesday.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved higher - closing at 40.60ppt and £44.35/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 - 26-09-2016

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