Spot prices are expected to increase in the next few days on the back of colder temperatures leading to higher demand. Near-term gas prices are also expected to rise following the falling temperatures; Norwegian supplies have improved although it is unclear whether storage withdrawals will be required to balance the system. Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
How did the energy markets close?
The gas curve saw little movement during yesterday's session despite most contracts opening higher in the morning. Linepack dropped to 11mcm short before midday while Langeled flows rose to 50mcm before falling to 45mcm by the end of the day. On the power curve, November-13 rose to £54/MWh, Front-Month's highest price since July on the back of stronger gas prices. Day-Ahead failed to register any movement despite reduced nuclear availability after a unit at the Dungeness facility was taken offline.
How did the energy markets open?
The UK gas system opened 27mcm long this morning despite Langeled flows dropping to 43mcm, falling by 10mcm overnight. Temperatures remain around the seasonal average, if not slightly higher which helped Day-ahead shed 0.05ppt from its price. Storage facilities are over 90% full and were injecting at a rate of 18mcm this morning. Day-Ahead power opened the session at £48.50/MWh for the third session in a row although the contract is currently trading £3/MWh higher than this time last year. Prompt contracts were unaffected by a wind generation forecast of 5.1GWh and CCGT increased its share of the fuel mix to 25%.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas fell while commercial electricity registered a slight increase - closing at 66.50ppt and £52.25/MWh, respectively. This can be seen in the graph below.
Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.
Latest Brent Crude Prices
Brent 1st-nearby prices displayed mixed movement throughout yesterday's session and finally closed with a $0.22/b gain, while WTI fell by $1/b taking the Brent/WTI spread to -$6.4/b.