|Market Close||Market Close|
|Gas contracts inched higher yesterday as a drop in Norwegian flows resulted in a short UK gas system, however gains on the far-curve were slightly restricted by weakening oil contracts. A warmer weather forecast for next week and a scheduled LNG delivery later in the month also helped to hold off the bulls.||Improved renewable generation helped Day-Ahead power move down on Wednesday, although movement on the rest of the curve was stable-to-bullish. A drop in APi2 coal and Brent helped to limit some of the upward movement further out but the front of the curve was supported by a rise in gas contracts.|
|Market Open||Market Open|
|An improved weather forecast for the weekend has resulted in downward movement on the near gas curve this morning. Residential demand is expected to fall on the back of warmer temperatures, while supply levels are also improving. Further out, prices have taken direction from another drop in Brent on the back of oversupply in the Middle East.||Power contracts on the near-curve mirror the movement of their gas counterparts this morning, with losses observed across the curve. An expected rise in wind generation has also helped the prompt open at a strong discount. Further out, another drop in oil and coal contracts has provided additional bearish pressure.|
Brent 1st-nearby prices have decreased further this morning and currently trade at around $37.7/b following the release of the latest OPEC report. The report showed that oil production in Saudi Arabia rose to record levels this month, resulting in a surplus of 100,000bpd for 2017.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 39.90ppt and £42.06/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