|Market Close||Market Close|
|Gas prices increased yesterday with little change to fundamentals and support coming from the coal and oil markets. Gas demand was higher in the UK and the IUK interconnector was due back online today which will result in a rise in exports. Meanwhile, the outage at the Gjoa platform in Norway was unresolved, tightening supply levels.||Stronger coal and a weaker renewable outlook for the coming days helped power prices move higher on Wednesday. Temperatures are also expected to increase next week which should lead to a rise in cooling demand, providing additional support.|
|Market Open||Market Open|
|Gains on the oil market continue to support the gas curve this morning, with stronger coal prices also a factor. Exports from the UK to Europe rose by 44mm cm/day following the return of the interconnector and the system is short as a result, despite higher UKCS production. Lower demand levels are expected over the coming days and the Gjoa outage should be resolved over the weekend, however, this did little to restrict the bulls.||Power contracts have added to their price once again due to an expected drop in wind generation and a bullish oil market. Wind generation has decreased slightly this morning, although warmer weather should see a rise in solar levels. A drop in US oil inventories has resulted in stronger Brent, with coal and gas contracts also on the rise.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display healthy gains this morning, somewhat unexpectedly as bearish movement was predicted with the release of the latest EIA report. However, the report was surprisingly supportive and showed a drop in production, while stocks were stable.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 42.55ppt and £43.49/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
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