|Market Close||Market Close|
|Although the temperatures dropped yesterday, the rest of the week is forecast to get warmer. It is this mild weather forecast along with strong supply that has pushed gas prices down again. A falling oil price has added bearish pressure also.||Similar to gas, the Power curves have dropped on the back of the mild weather forecasts, with further bearish support coming from increasing wind generation.|
|Market Open||Market Open|
|Residential demand is expected to drop by 4 mcm compared with yesterday, on the back of a warmer than expected November. This has weighed down on both spot and near curve contracts, and has had knock-on effects on the far curve coupled with the low oil prices.||Spot power prices opened £1/MWh higher this morning, likely a result of the slight drop in temperature last night. Both front month and seasonal curves are all down with influence coming from the falling gas prices and oversupply of oil.|
Oversupply from Iran and Russia and worries of higher US interest rates next month has kept oil under the $50/b mark. This bearish outlook is reinforced by a lack of economic market activity.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 38.02ppt and £40.03/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
Click to enlarge graph