|Gas prices moved higher on Friday despite a milder weather outlook for this week as well as strong LNG send-outs across Europe. Rather than take direction from comfortable fundamentals, gas prices were instead dictated by a stronger coal market and profit taking by traders.
|Power contracts rebounded on Friday with support provided by rising coal, carbon and gas. Traders also cashed in on their short positions, creating additional bullish pressure on energy markets.
|Temperatures are forecast to remain above the seasonal norm over the next fortnight which will weigh on residential demand, resulting in losses on the near-curve this morning. Meanwhile, coal and carbon markets have moved down, weighing on the rest of the curve.
|A milder weather outlook has helped to cap upward movement on the power curve this morning, with lower gas, coal and carbon markets helping contracts further along the curve shed from their price.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices moved down over the course of last week, rounding up Brent’s most bearish month since July 2015. A weaker demand forecast has helped to weigh on prices, in addition to waivers granted to 8 countries in regards to importing Iranian oil.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity was unchanged – closing at 59.55ppt and £58.35/MWh, respectively.
Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.
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