|Market Close||Market Close|
|Gas prices displayed downward movement yesterday despite strong demand levels as an upward revision in temperatures for next week and a falling oil market fuelled the bears. Demand levels in the UK are at their highest point so far this winter due to the current cold spell but the system remains oversupplied thanks to strong storage withdrawals and higher Norwegian imports.||A milder weather forecast for next week provided downward pressure on the power curve yesterday with weaker fuel and gas prices also contributing to the losses. Today's consumption levels were also expected to be lower than yesterday and wind generation was forecast to increase; helping the prompt to move down.|
|Market Open||Market Open|
|Gas demand is expected to rise 50mcm above the seasonal norm today but the system remains long as storage withdrawals are high. However, cold weather over the weekend and on Monday has supported the prompt this morning, although an expected rise in temperatures later next week has resulted in losses on the rest of the near-curve. Meanwhile, far-curve contracts continue to weaken due to falling Brent.||Wind generation is expected to fall to around 1.5GW over the weekend and demand levels are set to rise due to below average temperatures which has led to strong gains on the prompt this morning. The rest of the curve has followed the gas market and moved down but the losses are less prominent.|
Brent 1st-nearby prices were stable overnight, shedding just $0.03/b to fall below $30.2/b with sanctions expected to be lifted in Iran, flooding the market further, potentially causing further bearish movement.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 31.18ppt and £34.78/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