|Near-curve gas contracts displayed gains yesterday on the back of lower withdrawals from the Rough storage facility and higher exports from the UK to Europe. Further along the curve, the majority of contracts found support from rising oil prices and also posted an increase.
|The majority of the power curve strengthened on Wednesday, correcting some of the losses which were recorded earlier in the week. Temperatures are expected to fall below the seasonal norm next week and combined with a weaker wind generation forecast, prompt contracts displayed gains. On the far curve, the majority of contracts took direction from stronger gas and oil.
|The trend for gas contracts is generally unchanged from yesterday as overall fundamentals remain slightly bullish. A rise in demand levels has resulted in a tighter UK gas system, leading to further gains on the near-curve this morning. Further out, contracts continue to rally higher as Brent has recorded another increase.
|Power contracts continue to be influenced by rising gas and oil markets this morning with gains displayed across the curve. Temperatures are also expected to fall over the coming days which will lead to a rise in consumption and renewable generation is weaker than previous sessions.
Brent 1st-nearby prices inched back above $40/b yesterday following yesterday's EIA report which displayed a large fall in crude oil stocks and a slight drop in production. Traders also remain optimistic in regards to the upcoming meeting in Doha following comments from Kuwait, which has added to the bullish sentiment.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity posted a small gain - closing at 31.20ppt and £34.48/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