| Gas | Power |
| Market Close | Market Close |
| Gas prices moved down yesterday afternoon as traders cashed in on profits following strong gains earlier in the week. However, fundamentals were bullish as a significant drop in temperatures is expected next week which will push residential demand higher. The LNG outlook is also weak, while withdrawals at the Rough storage facility are 10mcm lower due to an ongoing outage. | Power contracts gradually moved down yesterday, erasing early morning gains as the curve tracked the movement of falling gas. A cold weather outlook provided support earlier in the session, while a workers strike in France is expected to impact several generation sites; the French Energy Minister has scheduled a meeting to address the situation next week. |
| Market Open | Market Open |
| Profit taking has continued this morning, further weighing on prices, while temperatures have also been revised slightly higher. Demand levels are set to be lower than expected on Monday and an oversupplied gas system has helped to weigh on the near gas curve. | Power contracts have shed from their price this morning with the exception of the prompt which has been pushed higher by an expected drop in wind generation. Temperatures next week are set to be milder than initially forecast, offsetting the effects of rising coal and oil markets. |
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Brent Summary Brent 1st-nearby prices display further gains and are close to levels seen a week ago following a bearish start to the week. Traders had doubts whether some nations would comply with proposed production cuts but a drop in output in Saudi Arabia has helped to dispel these fears somewhat. A weaker Dollar and a rise in Chinese imports also provided support. 1-year forward prices Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 48.79ppt and £47.86/MWh, respectively. Today's prices can also be found in an easy to read table on our 'current UK energy price' page. |
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