|Near-curve gas prices moved down on Monday as Norwegian flows ramped up, contributing to an oversupplied system. A slight rise in renewable power also helped to reduce CCGT demand. Further out, prices were pressured down by bearish coal and oil markets.
|Power contracts followed their gas counterparts and shed from their price yesterday as demand levels were below average and supply improved. Wind generation increased from Friday’s levels which provided additional bearish pressure, while weaker fuel prices weighed on the far-curve.
|The system has moved closer to balance this morning despite healthy supply from Norway as demand levels have picked up slightly. This has contributed to gains across the near-curve with the exception of the prompt as tomorrow’s demand outlook is weaker. Meanwhile, oil and coal contracts have rebounded, providing support at the back of the curve.
|Wind and solar power has dropped today, resulting in higher CCGT demand, although wind levels are expected to pick up as the weekend nears; helping the prompt record a loss. The rest of the near-curve displays gains with support coming from the gas market, while stronger coal has lifted prices at the back of the curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices were slightly bullish yesterday and have stabilised around $76.5/b this morning as bearish supply figures have been offset by positive talks between the US and North Korea which has supported global markets.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 55.58ppt and £54.70/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
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