|Market Close||Market Close|
|Despite a bullish opening to the session, gas prices moved down on Wednesday afternoon on the back of positive fundamentals. Mild weather is set to continue over the coming days and supply levels are set to improve despite reduced LNG send-outs. Demand levels were 20% below the seasonal norm yesterday and Dutch imports into the UK rose by 10mcm, contributing to a healthier supply picture.||The UK gas system is close to balance this morning and storage withdrawals have ceased as a result; leading to losses across the near gas curve. Gas demand is also expected to remain low on the back of above average temperatures, helping the prompt open at a discount. Meanwhile, the Pound has strengthened against the Euro and Brent has displayed a significant drop, providing additional bearish pressure further along the curve.|
|Market Open||Market Open|
|The outlook for power generation remained positive yesterday with wind levels expected to improve over the weekend as well as the restart of two nuclear reactors in Belgium; weighing on prices in the afternoon. Brent also shed from its price later in the session which applied downward pressure to some far-curve prices.||Wind generation levels are expected to peak at around 5GW tomorrow, almost doubling today's levels which has resulted in a significant loss on the prompt, combined with continued mild weather. Further along the curve, both coal and Brent have displayed strong downward movement which has helped to weigh on contracts.|
Brent 1st-nearby prices displayed strong losses yesterday, falling to around $42.2/b but an announcement by Saudi Arabian officials in regards to the country's plans to support the oil market helped prices recover; Brent currently trades just above $43/b this morning.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 37.33ppt and £39.38/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