|The ongoing outage at the Bergermeer storage site in Holland and an unexpected issue at the Rough facility offered support to the near-curve yesterday despite a long UK gas system. Temperatures remained mild for this time of year, lowering demand, while UKCS production also improved. Elsewhere, LNG supply remains low due to supply shortages in the Middle East and Turkey.
|Movement on the power curve varied on Tuesday with low consumption levels offsetting stronger fuel prices. Upward movement on the gas curve transferred to the power market in the afternoon but an improved nuclear outlook in France helped to restrict the bulls.
|Bergermeer is expected to return online tomorrow morning which has helped to limit upward movement at the front of the curve. However, temperatures are expected to turn colder next week which has led to a higher demand forecast. Overall movement on the curve is generally stable as the UK gas system has opened long, with oil and coal failing to provide much support.
|The prompt and Feb-17 contracts have posted a loss this morning as temperatures should remain mild for the rest of this week and the turn of the year, while wind generation is set to increase. The rest of the curve has strengthened with direction taken from rising gas, with oil prices also trading higher than in recent weeks.
Brent 1st-nearby prices remain above $55/b this morning following a stable session yesterday, a rise in API stocks has provided some bearish pressure, while the latest IEA report has cast a little doubt over OPEC production cuts.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 44.10ppt and £44.15/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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