|Market Close||Market Close|
|Gas prices continued to display a downward trend yesterday on the back of a healthy supply picture and weakening coal & oil. LNG send-outs increased further with deliveries expected to dock in the UK over the next couple of days, while above average temperatures are expected next week, also weighing on prices. Elsewhere, restrictions on Chinese domestic coal production continued to effect the worldwide market.||Similar to the previous session, power prices followed gas in moving down on Thursday with a mild weather outlook and weakening fuel markets helping to weigh on contracts across the curve. Wind generation is also expected to improve next week, also contributing to the losses.|
|Market Open||Market Open|
|Temperatures are forecast to turn slightly colder in the second half of March, offering some support to the gas curve, however, healthy supply in the short term has helped to pressure down prices this morning. The UK gas system has opened significantly oversupplied with LNG send-outs expected to increase further this month with 7 deliveries expected in the UK, compared to 2 in February.||Power contracts have decreased this morning, following their gas counterparts. A mild weather forecast for next week and an expected rise in wind generation helped to pressure down contracts on the near curve, while the far-curve was dictated by another drop in APi2 coal.|
Brent 1st-nearby prices almost hit a 3-week low yesterday but remained range-bound and held around $55.03/b before climbing back to $55.4/b this morning. Russian output in February was unchanged from January’s levels and this failure to meet targets provided bearish pressure.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 44.70ppt and £44.64/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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