Friday saw higher demand for gas and lower Norwegian Langeled flows - which led to a tightening in the UK gas system, pushing NBP spot and near curve prices a little higher. Today, we can expect to see UK NTS demand around 16 mm cm higher than on Friday. What's more, March 2013 prices could rise as temperatures are set to fall below average this week. Turning to power, spot prices are anticipating a rise over the next few days and with temperatures dropping, overall consumption should be closer to average for this time of year. On the curve, prices rose to â‚¬41.23/MWh for EEX German cal 14 on Friday.
How did the energy markets close on Friday?
Near contracts were supported by a short system on Friday, with Day-Ahead rising 0.45ppt during the day. The system regained balance in the early evening. Elsewhere, we saw Front-Month close up 0.50ppt and S13 closed up 0.75ppt. Power also saw rises during Friday's session, with Day-Ahead being the only exception, dropping £2.00/MWh during the day. A gain of £0.85/MWh was seen for S13, reaching its highest level since the start of the year. We also saw support for carbon allowances as Angela Merkel backed Germany's renewable policies.
How did the energy markets open?
The gas system opened short this morning, but this didn't deter an improvement in flows from Friday's session. LNG was the biggest changer, tripling in length to open at 15mcm. After several weeks of zero and low imports, the interconnector was flowing at a rate of 12 mcm. Day-Ahead gas opened 1.75ppt higher and Front-Month was up 0.85ppt. Again, power followed suit and on the back of stronger coal and carbon prices, we saw rises. Day-Ahead was £1.00/MW higher and Front-Month was up £0.55/MWh.
1-year forward prices
Friday's market close data revealed a sharp rise in 1-year forward prices for business gas and business electricity; rising 1.05ppt and £0.88/MWh respectively. This rise is represented in the graph below.
Latest Brent Crude Oil prices
Economic data from the US acted as a catalyst for crude oil prices - which broke resistance to reach $117.07/bbl. The market still remains overbought, and resistance now stands at $117.07, $118 and $120.2/bbl. Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.