|Market Close||Market Close|
|The UK gas system was short throughout yesterday's session which resulted in downward movement on the near-curve, with a jump in oil prices supporting contracts further out. Demand rose by 14mcm compared to Monday's levels following a rise in gas-fired power generation and colder temperatures, while UKCS flows were restricted by maintenance. Some of the gains at the front of the curve were slightly limited by a strengthening Pound.||Power contracts recorded small gains yesterday with a warmer weather forecast for later in the month offering some support, as demand for cooling is expected to increase. A stronger gas market and bullish oil prices also offered additional support to contracts on the far-curve later in the session.|
|Market Open||Market Open|
|The outage at the Gulfaks field has been resolved but Norwegian flows are still low and demand remains high due to below-average weather and weak wind generation. However, temperatures are expected to increase next week which has resulted in bearish movement on the curve, with wind levels also set to rise over the coming days. Meanwhile, a slight downward correction in oil prices could result in some additional losses further out.||Power contracts have followed the movement of gas this morning and recorded losses, with Brent also correcting down following yesterday's strong gains. Rising coal limited some of the downward movement on the far-curve, while an expected rise in wind generation helped towards bearish pressure on the prompt.|
Brent 1st-nearby prices display gains this morning and currently trade at around $47.75/b with recent EIA and OPEC reports displaying a higher demand forecast for next year. A small correction could take place today as traders look to cash in, with the release of the monthly IEA report also a factor.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 42.00ppt and £43.53/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