|Gas prices moved higher on Friday as forecasts for the end of the month point towards more cold weather and storage levels are very low, causing supply fears. Far-curve prices increased later in the session following a rise in oil prices, while the coal market was generally stable.
|Fundamentals were largely unchanged on Friday as power prices followed gas and moved higher ahead of the colder weather outlook for the end of the month. Upward movement at the back of the curve was less prominent despite a rise in oil prices, with little direction provided by the coal market.
|Temperatures are expected to fall well below the seasonal norm at the start of next week which has contributed to more gains at the front of the curve this morning. The system is around 5mcm long despite a number of outages, while storage levels across Europe remain low as a result of the recent cold stint.
|Strong upward movement on the gas curve has pushed corresponding power contracts higher this morning as the UK braces itself ahead of another cold spell next week. Wind generation has increased from Friday’s levels but has had little impact on prices, while the back of the curve has found support from stronger coal and oil.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display a strong rebound this morning but there is no real market driver at present, bullish sentiment was provided by the latest US jobs report but the forecast for this week is currently unclear.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 50.68ppt and £49.52/MWh, respectively.
Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.
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