|Gas prices moved down on Friday on the back of a warmer weather forecast for the weekend and this week, which will weigh on demand levels. Rising Brent helped to restrict some of the downward movement further along the curve but the overall sentiment remained bearish.
|The UK gas system has opened short this morning as a result of maintenance in Norway which has reduced imports. Further maintenance is also taking place at UK gas fields and terminals which has further impacted supply and contributed to gains on the near curve. Weaker demand levels as a result of warm weather has limited some of the upward movement, although rising oil continues to support prices on the far-curve.
|A weak wind generation forecast for the weekend and the start of this week led to gains on the prompt on Friday. A warm weather forecast helped to weigh on some near-curve contracts but stronger coal and oil contracts helped some far-curve contracts move higher.
|Power contracts have opened at a premium this morning despite the continued warm weather. Instead, prices have followed the movement of their stronger gas counterparts, while weak wind generation has offered further support to the prompt. Meanwhile, cooler temperatures are expected in the second half of June which contributed to some of the morning's gains.
Brent 1st-nearby prices remain above $50/b this morning following a small gain, although the market is generally stable. A weaker US dollar and on-going tensions in Nigeria continue to offer support but prices appear to have hit a ceiling and are struggling to move clear of the $50/b mark.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 37.45ppt and £39.50/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