|Market Close||Market Close|
|The majority of gas contracts recorded a loss on Friday with improved supply weighing on the front of the curve. Temperatures were expected to remain above average over the weekend, while Norwegian flows increased and contributed to a long system. Far-curve prices were pressured down by a falling oil market as the US backed out of the Paris Agreement.||Movement on the power curve was mixed on Friday with no apparent trend during the session. An improved renewable generation forecast for the weekend helped towards some losses at the front of the curve but solar power was expected to be at a minimum this week, offering some resistance. Further out, a few contracts took direction from a weaker oil market, while coal prices stabilised.|
|Market Open||Market Open|
|Gas prices display gains this morning as fundamentals have turned bullish over the weekend. Support was provided by news in the Middle East, as the UAE, Bahrain and Egypt have cut ties with Qatar due to the country’s links with terrorism. Meanwhile, cooler temperatures are expected in the UK this week, while a weaker outlook for oil did little to curb the upward movement on the far-curve.||Power contracts have tracked the movement of gas and trade higher this morning, with a rising coal market and the news regarding Qatar offering support. Coal prices have increased following the Donald Trump’s decision to back out of the Paris Agreement, although oil prices continue to move in the opposite direction. In terms of supply, wind generation is expected to remain strong this week but will decrease as we head into the weekend.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have rebounded slightly since Friday’s opening but the overall trend remains bearish. The US decision to renegotiate its climate agreement continues to weigh on prices, while traders will keep an eye on developments in the Middle East as nations have severed ties with Qatar due to terrorism links.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 43.38ppt and £43.35/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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