|Market Close||Market Close|
|Gas prices moved down on Tuesday on the back of a weak oil market, healthy supply and a milder weather forecast for next week which should reduce demand levels. The UK gas system was long due to increased storage withdrawals, with stronger Norwegian imports and LNG send-outs also contributing to the healthy supply picture.||Power prices displayed mixed movement yesterday with an expected drop in temperature today supporting the prompt. Milder weather is set to return to the UK next week which helped to weigh on some near-curve contracts, while weaker fuel resulted in losses further out.|
|Market Open||Market Open|
|The UK gas system opened short this morning as demand levels are at their highest point this winter, ramping up to 237mcm due to the current cold spell. Demand is 40mcm above the seasonal norm at present with temperatures expected to drop to 6 ° below the seasonal norm over the weekend; resulting in gains across the curve. Meanwhile, Norwegian gas flows are being redirected to Europe, limiting flows via the Langeled pipeline into the UK.||The return of nuclear units in the UK and ample wind generation helped Day-Ahead power open at a discount this morning, despite rising demand. Elsewhere, most contracts followed the movement of gas and displayed gains with below average temperatures over the next few days the main market driver.|
Brent 1st-nearby prices have displayed a rebound this morning to climb back above $31.4/b on the back of stronger data relating to Chinese imports. However, the upward movement could be short-lived with the latest EIA report set to be released.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity posted a small loss - closing at 32.22ppt and £35.78/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