|The UK gas system was close to balance on Friday as weaker UKCS production was offset by improved Norwegian flows and a drop in exports via the IUK pipeline. This improved supply picture helped to apply downward pressure across the near-curve, although losses further out were limited by rising Brent.
|Strong renewable generation and cool temperatures helped the Day-Ahead contract move down towards the end of Friday's session. The rest of the near-curve also displayed a rebound and were dictated by a decrease in gas contracts in the afternoon, with falling coal prices another bearish factor.
|The system is slightly short this morning as a result of on-going maintenance at UK gas facilities, although an increase in flows via the Langeled pipeline has helped to lessen the impact. Elsewhere rising oil continues to restrict bearish movement on the far-curve, while an LNG delivery is expected to dock in the UK on the 14th of August.
|Power contracts track the movement of the gas market this morning and losses can be observed across the curve. High wind generation has helped the prompt open at a discount, while another drop in APi2 has provided additional downward pressure further out; although this has been slightly negated by an increase in Brent over the weekend.
Brent 1st-nearby prices moved higher over the weekend and trade just below $44.8/b this morning, with talks between OPEC members in regards to production cuts expected to be one of the main market drivers this week.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased slightly - closing at 39.94ppt and £42.19/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