|A drop in oil pressured down energy markets yesterday, including gas. Recovering global equities did little to support commodities, with coal and carbon also moving lower. A rise in gas-fired power demand sent the system short but its impact was limited by a warm weather outlook.
|Power prices followed gas and coal, displaying losses across the curve on Tuesday. Carbon also decreased, while warm weather and a slight rise in wind levels was expected today, weighing on the prompt.
|The UK gas system is balanced this morning as warm weather and improved renewable power generation has reduced demand. Commodity markets offer little in the way of support and gas prices have opened slightly weaker. LNG send-outs continue to decrease due to high storage levels, providing further bearish pressure.
|Sentiment along the power curve remains bearish this morning as oil markets have weakened and warm temperatures reduce demand. Economies still show signs of recovery but this had little relevance to power markets.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices had dropped by over $1.4/b due to concerns that Russia could increase production at the end of next week, negating the effects of OPEC production cuts.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a loss closing at 30.30ppt and £40.18/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
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