|Market Close||Market Close|
|Gas prices decreased during Monday’s session as the current cold spell is only expected to last until the weekend and the impact on storage levels should be minimal; a mild January has kept storage levels above the seasonal norm. Contracts further along the curve were pressured down by losses on the oil market, with bearish sentiment provided by an expected rise in global interest rates.||The expected rise in temperatures later in the week helped to weigh on near curve power contracts yesterday, although renewable generation was set to remain low today. Sentiment at the back of the curve was similar to gas, with falling oil the main market driver following significant movement on financial markets.|
|Market Open||Market Open|
|Temperatures for next week have been revised higher once again and this has helped towards further downward movement at the front of the gas curve. The system initially opened 10mcm long despite strong demand but a drop in IUK flows quickly brought supply/demand closer to balance. Meanwhile, oil prices continue to decrease due to the current global sell-off and this has resulted in more losses at the back of the curve.||Fundamentals are unchanged this morning as power prices tracked the movement of gas. Brent continues to weaken despite slightly supportive production figures which has resulted in downward movement at the back of the curve, while the front of the curve has opened at a discount due to a milder weather outlook for February.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display strong downward movement and have fallen to $67.6/b this morning. Supply has taken a backseat in terms of dictating the oil market and instead traders are looking to the US economy for direction as a significant rise in Bond yields has led to a global sell-off in equities.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 45.43ppt and £45.39/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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