|Temperatures are set to remain cold for the rest of this week which helped to lift prompt contracts on the gas curve due to the expected rise in demand. Higher storage withdrawals and an increase in Norwegian imports resulted in a long system but this failed to offset the gains. Further out, contracts posted losses as they followed the movement of weakening Brent.
|Power prices moved higher and took direction from their gas counterparts and this week's cold stint. Further along the curve some of the gains were restricted by the weak oil market, with some contracts even displaying a loss.
|Next week's temperatures are set to be milder than initially expected which has helped pressure down gas contracts on the near-curve this morning. Meanwhile, oil prices show no sign of ending their bearish trend and have posted substantial losses over the past week which has weighed on the far-curve.
|The power curve continues to mirror the gas market this morning although the losses are not as prominent. An expected uptick in temperatures next week will lead to a drop in consumption levels, helping to weigh on the near-curve, while weaker fuel applied downward pressure further out.
Brent-1st nearby prices continue to display significant losses, falling to just under $31/b to reach a 12 year low. The outlook is generally unchanged from last week with the Asian markets showing no signs of improving just yet.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 31.73ppt and £35.88/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