|Market Close||Market Close|
|Outages at Norwegian and UKCS gas fields limited supply levels in the UK yesterday which provided support across the near curve on Wednesday. Norwegian flows fell by 15% despite the return of the Nyhamna processing plant, while UKCS flows via the Bacton terminal decreased due to maintenance. An increase in exports to Belgium also lifted demand levels above the seasonal norm despite warm weather reducing residential consumption. Meanwhile, prices further along the curve were dictated by stronger oil contracts following the release of the latest EIA report.||Power contracts inched higher across the curve yesterday with direction coming from the stronger gas market and a rise in coal and carbon emission prices. The Day-Ahead contract was one of the exceptions to the bullish trend as a warm weather forecast for today was expected to lower consumption levels and result in strong solar generation.|
|Market Open||Market Open|
|Norwegian imports via the Langeled pipeline have decreased further this morning despite no new outages, leaving the UK gas system significantly undersupplied. The system was further impacted by a combination of strong exports to Belgium and high storage injections, and this weak supply picture has lifted gas contracts on the near curve. Further out, the surge in oil prices continues to be the main market driver and additional gains can be observed.||The power curve displays more gains this morning with contracts once again following their stronger gas counterparts. Cooler temperatures are also expected in the UK over the weekend which will lead to an uptick in consumption. Wind generation has been revised slightly higher for the coming days which helped to limit the gains on the prompt but sentiment across the near-curve remained bullish.|
Brent 1st-nearby prices have recorded significant gains, rising by around $2.8/b to trade above $47.8/b this morning. Yesterday's bullish EIA report is the main factor for this upward movement as it revealed a significant drop in stocks for the first time since March.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 35.82ppt and £38.10/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