|Gas prices recorded strong losses yesterday as Norwegian flows are on the rise with maintenance at the Kollsnes processing facility and the Troll gas field nearing an end. Downward movement on the far-curve was less prominent as stronger oil contracts continued to offer support.
|Norwegian imports into the UK have increased this morning to around 229mcm, compared to 151mcm yesterday. However, a slight drop in temperatures has increased demand levels in Europe which has offset this rise in supply, resulting in a generally stable market.
|Downward movement on the gas market and an expected rise in nuclear generation on the continent resulted in some losses on the power curve yesterday. Temperatures are forecast to fall off slightly over the coming days which offered some upward pressure, while renewable production was also low.
|Near-curve power prices decreased slightly at the start of this morning's session and were influenced by their weakening gas counterparts. Contracts further along the curve were largely bullish with rising Brent continuing to have an impact, while weak wind generation restricted the losses on the prompt.
Brent 1st-nearby prices were almost at $53/b yesterday, reaching their highest price of 2016 so far before falling back to around $52.3/b this morning. Bullish pressure has been provided by a drop in US oil inventories and on-going supply issues in Nigeria.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher - closing at 38.65ppt and £40.34/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