|Increased CCGT generation and higher LDZ demand led to increases across the near gas curve on Thursday. The system was oversupplied on the back of improved Norwegian flows which capped the gains somewhat, while the far-curve was pushed higher by rising coal.
|A slight drop in wind generation was forecast for today, helping the prompt climb higher with increased heating demand supporting the rest of the near-curve. Coal prices continued to strengthen, while oil was generally static, resulting in minor gains on the far-curve.
|Temperatures are set to remain below the seasonal norm until mid-November, offering support to the near gas curve this morning. As it stands, there are no LNG deliveries expected to dock in the UK during November, providing further upward pressure. However, a long gas system has created some bearish resistance as supply levels are healthy. Further out, a drop in coal has helped some contracts record a small loss.
|Colder weather continues to impact the near gas curve and the majority of contracts have moved higher this morning. Day-Ahead and Front-Month are the exception to the bullish movement, with a healthy wind forecast the main factor behind the losses. Contracts on the far-curve display mixed changes as Brent has increased and coal has stabilised.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent has recorded a small gain this morning as the market lacks any real direction at present. Wednesday’s EIA report resulted in a drop but prospects of further OPEC production cuts provided on-going support.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity have recorded a minor loss – closing at 46.67ppt and £45.96/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
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