|Milder temperatures are expected this month and this has weighed on near-curve gas contracts during the previous two sessions as residential demand has decreased. Healthier wind levels also reduced the UK’s reliance on gas-fired generation, helping towards a long system. Further out, prices moved down following a sharp drop in oil prices in the afternoon.
|Strong wind generation was expected today, resulting in a significant loss for the Day-Ahead power contract. Milder weather weighed on the rest of the curve, with the help of weaker gas, while contracts on the far-curve closed at a discount thanks to falling coal and oil markets.
|The trend is little changed from yesterday with an improved supply/ demand outlook contributing to losses across the near-curve. Norwegian flows are strong at present, while two LNG deliveries are expected to dock in the UK next week. Weaker oil continues to pressure down prices on the far-curve as the coal market has stabilised.
|Wind levels are set to drop tomorrow and colder weather is expected over the weekend, helping the prompt add to its price this morning. The rest of the near-curve continues to move down, almost mirroring the gas-curve and the back of the curve is dictated by a drop in Brent.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent prices display a sizeable drop from yesterday’s open as the latest stocks report failed to offer any real direction and instead the market was supported by rising US production; Brent currently trades at $61.62/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 47.43ppt and £46.36/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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