|Gas prices moved down during yesterday's session due to weaker demand levels and comfortable supply. It was also announced that the Troll gas field would have its production permit increased to 33bcm for the 2016 gas year; providing further downward pressure. Elsewhere, a number of LNG deliveries are expected to dock in the UK this month which contributed to the healthy supply outlook.
|An improved wind generation forecast and weaker consumption helped Day-Ahead power record a loss on Tuesday. Meanwhile, warmer temperatures are expected towards the end of April which assisted the bears further along the curve. Weaker gas and fuel contracts were also a factor for yesterday's downward movement.
|Overall fundamentals remain healthy today with the UK gas system opening long thanks to steady Norwegian flows and higher LNG send-outs. However, temperatures are expected to fall back to around the seasonal norm over the weekend which supported some prompt contracts. Prices further along the curve found support from a rebound in oil prices following optimism in regards to a halt in production.
|Power contracts followed the movement of rising gas, coal and oil this morning with gains visible across the curve. A slight uptick in consumption is also expected over the weekend, although improved renewable generation helped to limit some of the gains on the prompt.
Brent 1st-nearby prices were stable for most of yesterday's session before rallying higher as a result of Kuwait's governor claiming a freeze deal could be agreed even without Iran, causing market optimism.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 31.24ppt and £34.45/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