|Market Close||Market Close|
|A drop in oil prices helped to weigh on gas contracts on Tuesday, with falling APi2 coal also a factor. However, the Pound continued to weaken against the Euro which helped to limit some of the downward movement. In terms of supply, Norwegian flows were slightly down on the previous session and exports to Belgium hit a 9-month high, however, healthy LNG send-outs resulted in a long UK gas system.||Most power contracts shed from their price yesterday afternoon with weakening fuel prices the main market driver. Weaker currency markets helped to restrict some of the losses on the near-curve but the prompt was pressured down by healthy renewable generation and a warmer weather forecast.|
|Market Open||Market Open|
|A milder weather forecast and healthy renewable power generation has helped to reduce gas demand this morning, resulting in losses on the near-curve. A further drop in demand could result in higher European storage injections, with the UK's Rough facility still undergoing maintenance. The UK gas system is also slightly closer to balance this morning following another rise in exports to Belgium. Further out, another decrease in coal and oil prices helped contracts to move down.||Prompt power contracts have taken direction from their bearish gas counterparts this morning and have opened at a discount. Falling Brent and APi2 coal have also contributed to losses further along the curve. Elsewhere, temperatures are expected to rise above the seasonal norm at the weekend and wind generation remains strong.|
Brent 1st-nearby prices continue to move down this morning and currently trade just above $48/b. The impact of the 'Brexit' vote continues to provide volatility on the oil market, while OPEC output is high despite weak demand.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 42.54ppt and £44.14/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