|Colder temperatures continued to push gas contracts higher yesterday, with a reduction in Russian flows via the OPAL pipeline also providing support. The drop in Russian supply was a result of a dispute between Gazprom, the EU Commission and PGNiG in Poland. A rise in coal and oil contracts and limited storage levels were also bullish factors.
|The prompt and the rest of the near-curve was pushed higher in the morning due to the stronger demand outlook for the coming days but gradually decreased during the rest of the session. An improved wind generation forecast for today was the main factor behind bearish movement on the prompt. Meanwhile, front-Month was supported by the cold weather forecast and stronger coal helped towards gains further out.
|The UK gas system opened long this morning following a strong rise in European imports, restricting upward movement on the near curve. However, low stocks, a weak LNG outlook and issues surrounding Russian flows into Europe continue to pressure contracts higher today.
|Temperatures are set to turn colder next week and wind generation should also fall, helping contracts on the near power curve to strengthen this morning. Increases on the gas and oil markets also helped to fuel bullish pressure, although APi2 coal has recorded a loss.
Brent 1st-nearby prices increased yesterday, rising by over $1.15/b during the session despite bearish pressure provided by the latest EIA report. Ongoing support has been provided by the compliance of OPEC and non-OPEC members in cutting production levels.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved higher - closing at 48.65ppt and £47.30/MWh, respectively.
Today's prices can also be found in an easy to read table on or 'current UK energy price' page.
Click graph to enlarge
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