Spot Power prices were bearish yesterday, despite wind power in Germany being weakened. French Nuclear availability has increased which has improved thermal availability. Low Langeled and BBL flows tightened, however, the milder than average weather has counteracted this and saw price losses yesterday. With the weather expected to continue in this vain, softer prices are forecast today. Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
How did the energy markets close?
Day-Ahead gas contract gained 0.65ppt by market close yesterday. This came as a result of undersupplied system flows from Bacton BBL. Lower demand, and higher weather temperatures effected the market, limiting gains for day-ahead contracts. Front-Month contracts remained steady, despite a $0.48/bbl gain for Brent crude with continuing uncertainty in Libya. On the power curve, contract gained £0.30/MWh. Contracts were extremely steady elsewhere within the prompt curve. Seasonal contracts made losses ranging from £0.05/MWh to £0.20/MWh, driven by weakening Front-Month APi2 coal after recent highs.
How did the energy markets open?
On the gas curve, Day-Ahead moved 0.45ppt. This came despite increased flows, as storage facility Rough, saw the first withdrawals since April. The Day Ahead power contract opened flat, the rest of the curve saw mainly bullish sentiment as new Front Month Dec13 opened £0.20/MWh higher. Coal prices, and an increase in brent have had an influence on seasonal contracts, due mainly to a disruption in Libyan shipments.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity went down - closing at 66.90ppt and £52.33/MWh, respectively. This can be seen in the graph below. Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.
Latest Brent Crude Prices
Brent prices were on the rise all day yesterday and opened up on $109.3/b this morning as the situation in Libya continues to have an effect on the market.