31st May 2016 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas prices continued to increase on Friday, as supply from Norway was disrupted due to maintenance work at the Kollsnes plant. The warmer temperatures over the Bank Holiday weekend contributed to a downward movement on the Day-ahead contract. Weekend power prices were higher week-on-week reflecting what had been a tight market all week long. The market expected a stronger wind input, while coal prices remained supported at the end of last week, providing support to power prices.
Market Open Market Open
The gas market has opened strongly this morning, and temperatures are now expected to be below seasonal norms which will weigh on the prompt and near-curve. The market is likely to continue to experience a decrease in imports from Norway this week due to planned outages. However an influx of LNG vessels may offset the bullish impact of Norwegian maintenance. Bearish oil prices could see far-curve prices follow suit. The market remains tight this morning amid lower temperatures, low wind and solar conditions. Curve prices firmed on the back of higher Carbon prices and low liquidity. Additionally, oil prices did not correct downward yesterday and continued to climb over the Bank Holiday weekend.

Brent Summary
Brent 1st-nearby prices have seen an increase of $0.30/b to trade at $49.48/b this morning. OPEC producers are raising exports ahead of a meeting scheduled for Thursday, putting re-balancing of the system at risk.

1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & electricity increased - closing at 35.75ppt and £38.28/MWh, respectively.

Today's prices can also be found in an easy to read table on our current UK energy prices  page.

Click graph to enlarge

Energy Price Graph - 31-05-2016