|Prices ended the week on a slightly bullish note despite a bearish start as temperatures are expected to move closer to seasonal norms in early March. Near curve contracts were pushed higher at the NBP on Friday due to prospects of slightly below-average temperatures and lower wind power generation in the UK.
|A deeply under supplied UK gas system pushed European gas prices higher at the open this morning. UK gas demand is expected to be above seasonal norms this week, which remains a supportive factor for NBP spot prices. LNG sendouts are higher in northwestern Europe which should continue to keep a lid on prompt contracts overall, while curve contracts are more likely to follow the rebound in global markets.
|Contracts across the curve gained value on Friday, tracking the gains of their equivalent gas products, following revised weather forecasts indicating colder weather.
Power prices are currently rebounding as governments and central banks are expected to announce measures to support the sectors that suffered most from the Coronavirus outbreak. Lower temperature forecasts and below average wind output should support the European power spot prices today.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices continued to display significant losses on Friday. Brent has opened this morning at $49.67/bbl.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased– closing at 29.95ppt and £38.70/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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