26th November 2015 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices inched higher yesterday despite a healthy supply/ demand outlook in the UK and a long gas system. An unplanned outage in Norway may have offered some support to near-curve prices but the main market driver was on-going political tensions, as Gazprom cut imports into Ukraine due to lack of payment. Power contracts on the near-curve were on the rise yesterday as wind generation was expected to fall significantly today. Stronger gas contracts also applied upward pressure to the curve with an increase in Brent and coal offering support further out.
Market Open Market Open
Demand levels have dropped once again this morning but the gas system is 21mcm short due to reduced imports from Norway and Holland. Temperatures are set to turn colder at the start of December which offered further support to the bulls and prices across the curve have moved higher. Temperatures are expected to remain above average until the end of the month which has supported the prompt this morning. However colder weather is expected in December and wind levels are expected to drop significantly which has resulted in gains on the rest of the near-curve.

Brent Summary

Brent 1st-nearby prices displayed another gain yesterday and climbed above $46/b, however, prices have opened at a loss this morning due to another rise US crude oil stocks; Brent currently trades at around $45.7/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 37.35ppt and £39.26/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 - 26-11-2015