27th May 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Cooler weather and low renewable power generation lifted gas demand yesterday, while maintenance in the North Sea limited supply. This resulted in strong upward movement across the near gas curve. The power curve followed the overall energy complex, with high demand in the UK contributing to strong upward movement on gas contracts. Carbon and oil markets also continued to rally higher on the back of an improved demand outlook for fuel.
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The system has moved 9mcm long as demand is below the seasonal norm following a rise in temperatures, with warm weather also expected next week. This has led to losses across the near curve, with a downward correction on carbon markets weighing on prices further out. Power prices have followed weaker gas and commodities, with a warm weather outlook, which is more in keeping with the seasonal norm also helping towards decreases at the front of the curve.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent Crude displays a loss this morning, taking direction from a drop on carbon markets, with overall fundamentals unchanged.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 59.59ppt and £72.15/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 - 27-05-2021

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