|Market Close||Market Close|
|Weaker residential demand and healthy supply levels weighed on gas contracts yesterday. Demand rose to 139mcm, compared to 116mcm on Friday but still remains well below the seasonal norm, while stronger wind levels lessened the UK's need for gas-fired generation. The UK gas system was oversupplied as a result, also helped by strong Norwegian imports and a rise in LNG send-outs.||The gas curve displays numerous losses this morning as residential demand is expected to fall by 15mcm today and three LNG deliveries are expected to arrive in the UK this week, resulting in strong LNG send-outs. However, the healthy supply picture will result in higher exports to Europe and increased storage injections which has provided support to the prompt.|
|Market Open||Market Open|
|Milder temperatures reduced consumption levels in the UK yesterday and wind generation remained strong which resulted in lower near-curve prices. Further out, most contracts displayed a similar trend to their weaker gas counterparts, with further downward pressure coming from falling Brent and coal.||Power prices continue to track the movement of gas and oil and have posted further losses this morning. Wind generation is also expected to peak at around 6GW later in the week and will remain strong over the weekend.|
Brent 1st-nearby prices have recorded further losses and currently stand just above $47/b with direction coming from a bearish 'world energy outlook' according to the recent IEA report.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 36.70ppt and £39.25/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