|Unplanned outages resulted in reduced UKCS production on Monday, while demand levels in the UK also rose to 22% above the seasonal norm, resulting in a significantly undersupplied system. This led to a strong rise on the prompt with gains displayed across the curve, although some of the upward movement was restricted by the scheduled arrival of several LNG deliveries from Qatar.
|Far-curve power contracts moved down yesterday afternoon following the agreement between Russia and Saudi Arabia to stabilise the oil market. The front of the curve was largely dictated by the gas market and posted gains on the back of a weak supply picture, ignoring healthy renewable generation.
|The UK gas system remains short this morning as UKCS production continues to be impacted by unplanned outages, while exports to Belgium also remain high. However, UKCS flows have increased slightly, while Norwegian flows are also higher and movement along the curve is generally stable following bearish movement in the morning.
|Power contracts have decreased this morning with the far-curve continuing to take direction from yesterday's announcement in regards to the oil market. Meanwhile, near-curve prices have followed their gas counterparts and also moved down, helped by mild temperatures and comfortable wind levels.
Brent 1st-nearby prices are slightly bearish this morning following gains over the weekend and yesterday morning. The energy ministers of Russia and Saudi Arabia signed a pact yesterday which will see the two nations co-operating to help stabilise the oil market, however, the Saudi minister stated that 'there is now no need to freeze production' which offset the effects of this deal.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 37.38ppt and £41.23/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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