|Market Close||Market Close|
|Another outage in Norway tightened the UK gas system yesterday and the LNG outlook remains weak due to higher Asian prices, resulting in a rise in gas contracts on the near-curve. Oil prices also climbed higher in the afternoon which helped to support contracts further out, with a weaker Pound also a factor.||A decrease in gas supply, low renewable generation and a rebound in oil helped power contracts rise across the curve on Wednesday. Wind and solar were expected to decrease further today, offering support to the prompt, while a rise in fuel markets and the strengthening of the Euro against the Pound contributed to gains further out.|
|Market Open||Market Open|
|The system is still short this morning due to a drop in supply and weak renewables which has pushed CCGT demand higher. This has resulted in further gains on the near-curve, however, wind levels are expected to pick up slightly tomorrow, weighing on the prompt.||Sentiment on the power market is largely unchanged from yesterday with direction coming from gas and oil markets. Renewables are weak, as expected but should improve tomorrow, helping the prompt record a small loss. Meanwhile, bullish oil has led to gains at the back of the curve.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display a rebound this morning, ignoring a bearish API report and instead taking direction from doubts surrounding Russian and Saudi Arabian production. It is thought that statements released by the two nations which suggested a potential rise in output could have been a market strategy.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 57.55ppt and £56.37/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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