|The UK gas system was short for the majority of Friday's session which helped to support front-month contracts. An outage at the Rough storage facility reduced storage withdrawals which contributed to the undersupplied system. Brent displayed a significant drop in the afternoon which provided some downward pressure but gas prices displayed another rebound later in the session to close at a premium.
|Power contracts were dictated by a stronger gas market on Friday with gains displayed across the curve. However, a milder weather forecast for this week helped to limit the upward movement, with temperatures expected to remain above average this week.
|Temperatures are expected to remain above average until the start of January at least and this will significantly reduce demand levels in the UK. An improved supply picture has also helped the system move 19mcm long and the gas curve has opened with a series of losses this morning.
|Mild temperatures and a healthy wind generation forecast has resulted in losses on the near power curve this morning, with further influence coming from weaker gas. Temperatures in London are expected to be 6 ° above the seasonal norm over the coming days which has helped the prompt shed £1.25/MWh from its price. Further out, falling Brent and coal provided additional bearish pressure.
Brent 1st-nearby prices have fallen once again this morning and now trade at around $42.7/b as Friday's OPEC meeting provided more bearish pressure as members failed to agree on an output limit.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 36.85ppt and £39.08/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