27th October 2015 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices decreased on Monday as overall fundamentals remained healthy despite another outage in Norway, which restricted the prompt from falling further. Gassco announced that the Troll and Kvitebjorn gas fields suffered unexpected outages, reducing Norwegian flows into the UK. However, warmer temperatures and strong LNG send-outs allowed the bears to take control of the curve. Maintenance continues at the two Norwegian gas fields this morning and imports into the UK remain low, however, the outages are expected to be resolved later today. Despite the drop in Norwegian supply, the UK gas system remains long this morning as demand levels are lower than previous sessions; helping to weigh on near-curve contracts.
Market Open Market Open
Near-curve power prices inched higher yesterday afternoon despite a mild weather forecast for this week as wind generation levels are set to fall over the coming days. Further along the curve, most contracts displayed a loss and followed weaker gas and Brent. Power contracts have displayed mixed movement this morning as a weak renewable generation forecast has offered support to the near-curve. This week's weather forecast has also been revised down with temperatures now anticipated to be closer to the seasonal norm. Further out, falling fuel prices have helped to weigh on some seasonal contracts.

Brent Summary

Brent 1st-nearby prices continue to fall and currently trade at around $47.2/b with US stocks expected to show a significant increase, resulting in further oversupply concerns.

1-year forward prices

Market close data has revealed that the 1-year forward price commercial gas recorded a small loss, while commercial electricity climbed higher - closing at 39.27ppt and £40.88/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 - 27-10-2015