|Gas prices decreased on Tuesday as healthy supply levels outweighed a rise in demand which was caused by colder weather. Residential demand increased by 10% compared to Monday's levels, while exports to Belgium were also higher. After initially opening short, the system became balanced in the afternoon as LNG send-outs and storage withdrawals strengthened; this helped the prompt shed from its price.
|The power curve was pressured down by falling gas and coal yesterday, while Brent also recorded another loss. Price-drops were evident across the curve, with an expected rise in wind generation and a milder weather forecast for the end of the week helping to weigh on the prompt.
|Gas fundamentals are generally unchanged today as an outage in Norway continues to reduce flows in to the UK. Meanwhile, exports to Belgium are set to decrease and the UK gas system is balanced which has helped to weigh on near-curve contracts. The outage in Norway will hopefully be resolved tomorrow and LNG supply remains extremely comfortable which should result in additional losses.
|Power prices continue to follow their bearish gas counterparts and an improvement in renewable generation has lessened the UK's reliance on gas-fired generation. Wind generation is set to rise across Europe, while British solar production should remain above the seasonal norm over the coming days. Weakening Brent also contributed to the losses displayed further along the curve.
Brent 1st-nearby prices decreased further yesterday but remain above $49/b this morning, yesterday's IEA report did nothing to dispel oversupply fears and the economic situation in China remains weak.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 41.35ppt and £41.18/MWh, respectively. This can
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
Click to enlarge graph