|Market Close||Market Close|
|The UK gas system was short for the majority of yesterday's session and LNG output is also set to decrease over the next few weeks which offered support to gas prices. Storage withdrawals ramped up in an attempt to balance the system, offsetting the drop in Dutch output. Meanwhile, Brent rallied higher and contributed to bullish movement further along the curve.||Wind generation was forecast to rise today and temperatures were expected to remain mild which helped the prompt to move down. Elsewhere, nuclear power plant operators, Engle and the Belgium government agreed to extend the lifespan of the Doel-1 and Doel-2 reactors by 10 years; both reactors were set to go offline at the end of March next year. The Doel-3 and the Tihange-2 reactors are also set to return online this month, increasing Belgian nuclear capacity by 5.9GW in total.|
|Market Open||Market Open|
|Just one LNG delivery is expected to arrive in the UK this week and LNG send-outs have dropped to 26mcm, a considerable decrease compared to November's average of 43mcm. This drop in supply is expected to restrict downward movement on the gas curve over the next few days. However, gas demand remains low due to above average temperatures, exports to Belgium have decreased and Norwegian supply continues to improve; resulting in losses across the curve this morning.||Rising wind generation has further weighed on the prompt this morning, with strong levels expected to continue tomorrow. Consumption should also remain below average with mild weather reducing residential demand over the coming days. Movement on the rest of the curve was generally mixed although most contracts followed their bearish gas counterparts.|
Brent 1st-nearby prices climbed above the $45/b mark yesterday but have dropped back down to around $44.8/b this morning. Yesterday's upward movement was the result of fresh data which showed a decline in US crude oil output during September.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 37.55ppt and £39.55/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