27th May 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas prices posted additional gains yesterday, supported by unplanned outages on Norwegian supply that left the system undersupplied, and the rise in the oil price. This was despite lower demand as warmer temperatures were forecasted. Curve prices strengthened yesterday, tracking higher fuel costs. Coal and carbon prices were also bullish as a result. Stronger solar generation was forecasted which saw bearish movement on the day-ahead price. Short-term demand was lower as temperatures were expected to be higher.
Market Open Market Open
Gains from yesterday's bullish session haven't been fully recovered this morning. Supply from Norway could remain disrupted as maintenance work is planned to start at the Kollsnes processing plant. This could continue to tighten gas balances and support near-curve prices. Forecasted warmer temperatures continue to contribute to the downward momentum. Power prices have risen from yesterday's open this morning, however we are seeing recovery from the prices that power closed at. Hopefully the recovery will continue today following the oil prices reducing and warmer temperatures in the UK.

Brent Summary
Brent 1st-nearby prices have seen a decrease of over $1/b to trade at $49.18/b this morning. Production in Canada is due to resume soon, while a speech from the US Fed later today should limit any major variations in prices today.

1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & electricity decreased - closing at 34.67ppt and £37.45/MWh, respectively.

Today's prices can also be found in an easy to read table on our Current UK Energy Prices  page.

Click graph to enlarge

Energy Price Graph - 27-05-2016