|Near-curve gas contracts posted losses on Tuesday as the UK gas system was oversupplied throughout the session, however, rising oil prices limited downward movement on the far-curve. Norwegian flows via the Langeled pipeline increased as a number of outages were resolved, although capacity at the Nyhamna processing plant is still restricted. LNG send-outs also ramped up which further weighed on prompt contracts with the help of an upward revision in temperatures for next week.
|The National Grid reported a tight power system yesterday which led to increases on the prompt, filtering through to the rest of the near power curve. Front-Month contracts were the exception to the gains with direction coming from a warmer weather outlook. In other news, coal-fired power generation in the UK fell to zero for the first time on record, this lasted for three hours due to outages at coal facilities.
|Rises on the oil market have offered support to gas contracts this morning with gains displayed across the curve. A 28mcm drop in Langeled flows has also offered support to the near-curve, with the UK gas system close to balance. Meanwhile, cooler weather in the UK is expected to result in a rise in demand levels over the coming days.
|An improved generation picture has helped Day-Ahead power shed from its price this morning, although wind generation is set to decrease over the coming days. An expected rise in temperatures helped to limit the gains on monthly contracts, while the rest of the curve tracked the gains on the gas market.
Brent 1st nearby prices increased by around $1.5/b yesterday and currently trade above $45/b this morning. However, the outlook is generally bearish with recent reports showing a rise in crude oil stocks in the US, while Canadian supply disruptions are expected to decrease gradually over the coming 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 34.95ppt and £37.42/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