|Most gas contracts posted losses on Monday as demand levels were weaker on the back of milder temperatures in the UK. Strong wind levels also lessened the UK's reliance on gas-fired generation, further reducing demand. Meanwhile, LNG send-outs increased with several deliveries set to arrive in the UK over the next few days, leading to an oversupplied system. Further along the curve a stronger Pound offset rising oil prices and the majority of prices stabilised.
|Movement on the power curve was mixed yesterday with the Day-Ahead and far-curve prices closing at a discount, while those in between climbed higher. Strong wind generation contributed to the losses on the prompt, while cooler temperatures over the next few days offered support to the rest of the near-curve.
|Rising Brent continues to offer support to far-curve contracts this morning, while an undersupplied gas system has contributed to gains on the prompt. Gas-fired power generation has increased this morning, while exports to Belgium are also higher, resulting in today's weak supply outlook. However, a milder weather forecast for the second half of April has restricted some of the upward movement on the near-curve.
|Day-Ahead power has opened at a premium this morning with weak wind generation expected over the next few days, combined with colder temperatures. The rest of the curve has followed the gas market and also posted gains, with stronger oil offering support further out.
Brent 1st-nearby prices continue to display strong gains, rising by around $3/b since the start of Friday's session. The main factor for the bullish trend is the optimism surrounding the upcoming meeting in Doha as it is thought a 'freeze deal' would be possible even without Iran's involvement.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 31.45ppt and £34.60/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