|Market Close||Market Close|
|Gas prices displayed further losses on Wednesday despite on-going outages which restricted flows to the UK. A weak demand forecast was the main factor behind decreases at the front of the curve, while the far-curve was pressured down by bearish coal and carbon markets.||Power prices followed coal and gas markets yesterday and shed from their price, although weak renewable generation limited downward movement on the prompt. Slightly lower temperatures are also expected across Europe next week which should reduce cooling demand, further weighing on the near-curve.|
|Market Open||Market Open|
|The UK gas system has opened 9mcm long this morning with demand levels dropping to 35mcm below the seasonal norm due to warm temperatures. However, fuel markets have recovered somewhat, capping losses at the back of the curve. In other news, the Dutch government has hinted that it could cut production at Groningen to below 12bcm by 2020, significantly reducing available capacity in the country.||The front of the power curve has found direction from their weaker gas counterparts this morning, with weak demand outweighing supply constraints and weak renewables. Further out, prices continue to follow weaker coal markets, ignoring a slight rise in Brent.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display a small rebound this morning with continued support provided fears surrounding Venezuelan supply. Production has plummeted and docks are unable to export enough oil as the nation’s oil industry looks close to collapse.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 54.70ppt and £54.28/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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