|Market Close||Market Close|
|Gas prices moved higher Friday morning as an outage at the South Hook LNG terminal reduced supply levels in the UK. However, the outage was resolved in the afternoon and a milder weather forecast helped contracts to shed from their price, with further bearish pressure coming from an oversupplied system.||Downward movement is evident on the gas curve this morning despite weaker LNG send-outs. The UK gas system remains oversupplied as demand for gas-fired power generation is lower due to higher wind production. Norwegian flows are also strong and temperatures are expected to stay above the seasonal norm, resulting in a bearish outlook.|
|Market Open||Market Open|
|A strong wind generation forecast, milder temperatures and weaker gas helped to weigh on the prompt and near-curve power contracts on Friday. Improved renewables reduced the UK's reliance on more expensive gas-fired generation and residential demand was below average; supply levels were comfortable as a result.||Wind levels are set to remain strong over the next few days which has helped Day-Ahead power record another loss this morning. Falling gas provided extra downward pressure on the near-curve, while weaker Brent and coal helped far-curve prices open at a discount.|
Brent'1st nearby prices recovered from some of their losses from previous sessions on Friday but have fallen below $48/b this morning with weak imports to China the main market driver.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity displayed a sizeable gain - closing at 37.02ppt and £39.48/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