29th June 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas systems across Europe were balanced yesterday thanks to a rise in imports from Norway, resulting in downward movement across the gas-curve. A drop in oil prices also helped to weigh on far-curve contracts, assisted by a weakening Pound. An improved wind generation forecast helped to pressure down the Day-Ahead contract yesterday, with weaker consumption also weighing on the rest of the near-curve. Further out, a drop in coal prices resulted in some bearish movement, with a drop in gas prices another factor.
Market Open Market Open
Norwegian flows are slightly down this morning, with imports via the Langeled pipeline into the UK weakening in particular. This drop in supply has helped to support some contracts with a small rise in oil prices also supporting the bulls. Elsewhere, demand levels are low and temperatures are expected to remain below the seasonal norm for the rest of the week. Movement on the power curve is generally mixed this morning with direction coming from changes on the gas market. A jump in Brent prices has lifted some far-curve contracts, while below average demand levels have weighed on the prompt, also helped by healthy wind generation for today and tomorrow.

Brent Summary

Brent 1st-nearby prices have rallied higher this morning, taking direction from potential workers strikes at oil pipelines in Norway and a bullish EIA report forecast; Brent currently trades at around $49.1/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 41.13ppt and £42.49/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 - 29-06-2016