|Gas prices moved down yesterday as supply levels improved and temperatures are expected to increase at the weekend and over the course of next week. Cooler temperatures in the last week or so resulted in an increase in residential demand which should soften in the coming days, resulting in bearish movement on the near-curve. Meanwhile, flows via the St Fergus terminal increased by 10mcm and UKCS output should remain stable until Sunday at least.
|A drop in wind levels today helped the prompt move higher on Tuesday, although weaker gas helped the rest of the near-curve move down. The far-curve also followed the movement of gas with further bearish pressure provided by another drop in APi2 coal.
|A drop in oil prices has exerted some bearish pressure on far-curve gas contracts this morning. However, movement at the front of the curve was bullish as the UK gas system is 10mcm short following a drop in Langeled flows, with UKCS production showing an increase to try and offset the difference.
|Day-Ahead power decreased this morning as wind generation is forecast to improve over the next couple of days, following a temporary decrease today. The rest of the curve has tracked the movement of the gas market and displays numerous gains, although a fall in Brent and coal has limited some of the bullish movement at the back of the curve.
Brent 1st-nearby prices decreased overnight following a reported rise in crude oil stocks despite expectations of a drop; if confirmed this would be the largest rise in inventories since the start of May.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased slightly - closing at 40.30ppt and £42.28/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
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