|Near-curve gas prices moved down yesterday as the Kollsnes processing plant in Norway returned online following a planned outage. The Corrib gas field in Ireland also returned following numerous delays which reduced UK exports, further weighing on the prompt. Movement at the back of the curve was more subdued as stronger coal offered resistance to the bears.
|EDF announced yesterday that work will be carried out at 20 power plants to replace faulty water pipes, resulting in bullish movement at the front of the curve. A rise in coal and oil prices also helped power prices move higher, while the Pound continued to depreciate.
|Mild weather and comfortable wind levels are expected to continue tomorrow, resulting in losses on the near curve this morning. The UK gas system is also oversupplied following the rise in Norwegian flows and reduced exports to Ireland. Further out, prices display small gains as a result of strengthening coal and oil markets, combined with a weaker Pound.
|Wind generation is expected to rise tomorrow, helping the prompt shed from its price, with weaker demand also a factor. The rest of the near-curve also displays losses although on-going issues at French nuclear facilities continue to offer some support. Fundamentals are largely unchanged from yesterday with bullish fuel markets restricting some downward movement at the back of the curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices are slightly bearish this morning and have stabilised at $56.65/b. Yesterday’s EIA and OPEC reports and today’s IEA report displayed mixed data and traders are now awaiting the release of today’s US stocks figures.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a loss – closing at 45.65ppt and £45.15/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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