|Market Close||Market Close|
|An increase in exports to Belgium, weaker UKCS flows and a rise in gas-fired power generation left the UK gas system in short supply yesterday; supporting prices on the near-curve. The drop in UKCS production was a result of unplanned maintenance work, restricting supply to the St Fergus terminal. Gains were also visible further out as contracts were dictated by rising Brent.||Power contracts mirrored the movement of gas yesterday and increases were observed across the curve, with further upward pressure coming from stronger Brent. The Day-Ahead contract was supported by weak wind generation, ignoring a milder weather forecast for later in the week.|
|Market Open||Market Open|
|Fundamentals are generally stable today and the UK gas system remains slightly undersupplied despite improved Norwegian flows, while demand is marginally lower than yesterday's levels. All in all, this has helped the majority of contracts to post losses this morning. Temperatures are also expected to improve later in the week which will dampen demand levels, weighing on the prompt. Meanwhile, on the far curve, prices continue to follow the movement of rising oil contracts.||Prices on the power curve displayed mixed movement this morning with the weaker demand outlook weighing on prompt contracts, although low wind production restricted some of the losses. Brent remains a supportive factor further along the curve, with the impending meeting in Doha fuelling the bullish trend.|
Brent 1st-nearby prices continue to rally higher and have climbed above $44.2/b as news from Russia and Saudi Arabia further fuelled optimism in regards to a potential freeze deal.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 31.35ppt and £34.53/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