|Market Close||Market Close|
|Gas prices moved down yesterday as healthy supply and below average demand levels dictated the market. UKCS flows were lower and residential demand displayed a small increase due to a slight drop in temperatures but the system was long on the back of strong Norwegian flows and a decrease in exports to Belgium.||The majority of near-curve power contracts recorded a loss on Wednesday with downward pressure coming from weaker gas which weighed on front-month contracts in particular. Despite a slight drop in temperatures they remain well above the seasonal norm which has lowered demand and also helped towards the losses. Despite this mild weather outlook, consumption levels were expected to fall today which supported the prompt.|
|Market Open||Market Open|
|The short term drop in temperatures has led to rise in UK demand, offering some support to near-curve contracts this morning. However, temperatures remain extremely mild for this time of year and have been revised even higher for later in the month. Norwegian imports have also increased with flows via the Langeled pipeline now close to capacity; resulting in a balanced system and numerous losses across the curve.||The overall generation picture remains comfortable this morning with no new outages to report which has led to price-drops across the curve. The losses are not as prominent as those displayed by gas however, as wind generation is expected to decline in the coming days.|
Brent 1st-nearby prices fell below $40/b yesterday afternoon but displayed a rebound on the back of a bullish EIA report, however prices moved back down to around $40.6/b overnight as oversupply concerns regained control of the market. An increase in coal prices has also restricted downward movement further along the curve although oil prices remain bearish.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 35.89ppt and £38.53/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