|Market Close||Market Close|
|Gas prices initially opened higher on Monday morning but a drop in oil prices helped contracts close at a discount. Unplanned outages at Norwegian facilities limited flows into the UK but warm weather reduced demand levels; helping the UK gas system remain close to balance. The morning's bullish movement was largely a result of a cooler weather forecast for the weekend and next week, with supply constraints also offering support.||Near-curve power contracts increased yesterday with a strong gas market offering support at the start of the session. Prices were also dictated by an expected drop in temperatures in the coming days which should continue into next week. However, warmer weather is expected to return later in the month and falling oil helped to limit gains in the afternoon.|
|Market Open||Market Open|
|Norwegian flows display a sharp increase this morning and oil prices have weakened, resulting in losses across the gas curve. Flows via the Langeled pipeline rose to 40mcm, compared to 12mcm yesterday, while send-outs from the South Hook terminal have increased to 56mcm; resulting in a long UK gas system.||The majority of power contracts have moved down this morning with the exception of the Day-Ahead contract which was pressured higher by a cooler weather forecast for tomorrow, as well as an expected drop in wind generation. The rest of the curve was dictated by falling gas and oil, with an upward revision in temperatures for later in the month also having an effect.|
Brent 1st-nearby prices display a significant drop today, although overall fundamentals remains rather bullish so the downward movement could be short-lived. The wildfire in Canada is still a major factor with supply disruptions expected to last for several weeks.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 34.42ppt and £37.18/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