|Market Close||Market Close|
|The Pound strengthened against the Euro yesterday which helped to weigh on near-curve gas contracts. Fundamentals were generally unchanged with colder weather resulting in high demand, restricting the downward movement somewhat. Elsewhere, Brent stabilised during the session and movement further along the curve was minimal as a result.||Power contracts tracked the movement of the gas market on Wednesday and recorded numerous losses, with oil and coal prices providing little direction. Next week's weather forecast is also set to be closer to the seasonal norm which will reduce consumption levels.|
|Market Open||Market Open|
|Norwegian supply into the UK has increased this morning which has led to a long UK gas system, further assisted by higher UKCS production. These healthy supply levels have offset the effects of rising demand and losses can be observed across the gas curve. Meanwhile, temperatures are expected to turn milder next week and gas flows should remain comfortable, resulting in a bearish outlook for gas.||The power curve continues to be pressured down by gas, although the losses are less prominent due to the closure of coal-fired facilities next month which will tighten the generation picture. A milder weather forecast and numerous LNG deliveries this month have also had a bearish effect on contracts.|
Brent 1st-nearby prices have shown little movement since yesterday's close and remain around $36.6/b due to varied fundamentals. It is thought that the oil market cannot fall any further than it has which can account for some of last week's upward movement, while yesterday's EIA report displayed a rise in US crude oil stocks.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 30.25ppt and £34.55/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