|Market Close||Market Close|
|Gas prices displayed downward movement yesterday as the UK gas system was 5mcm long despite scheduled maintenance restricting flows via the St Fergus terminal, reducing output by 19mcm. A drop in residential demand contributed to Tuesday's oversupply, as did an increase in LNG send-outs. Meanwhile, weaker oil and coal prices applied bearish pressure further along the curve.||Maintenance in Norway is set to continue for another 5 or 6 days following an extension, resulting in gains on the near-curve. Residential demand has dropped once again but the UK gas system is 8mcm short due to lower Norwegian flows and a halt in BBL output. However, a milder weather forecast helped to limit some of the upward movement.|
|Market Open||Market Open|
|Temperatures are expected to remain above the seasonal norm over the coming days and combined with a stronger wind generation outlook this helped the prompt shed from its price. In addition, weaker gas prices helped to weigh on the curve with a drop in oil prices also contributing to losses on the far-curve.||Power prices are generally bullish this morning with support coming from stronger gas and a rising demand forecast as we enter the winter months. Brent and coal have also recorded sizeable increases which resulted in gains on the far-curve.|
Brent 1st-nearby prices moved above $50/b overnight with support coming from stronger economic data in Asia and a couple of supply issues; a strike at Brazilian oil producers, Petrobras and a halt in shipments from a Libyan port had a significant impact on productivity.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 37.88ppt and £39.99/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