|A rising oil market supported contracts on the far gas curve on Friday, with a reported increase in demand fuelling bullish sentiment. Meanwhile, an expected rise in temperatures this week helped to restrict upward movement at the front of the curve, with improved supply levels also contributing to a long system.
|Power contracts found support from rising gas, coal and oil markets on Friday with an expected rise in LDZ demand this week also a factor. However, wind levels were healthy throughout the session and at the weekend, limiting the gains on the prompt.
|A significant increase in Brent has failed to have much of an impact on the gas curve this morning as overall fundamentals are generally healthy. A warm weather forecast for this week is expected to weigh on demand levels and the gas system has opened oversupplied; losses can be seen across the near-curve as a result.
|Near-curve power contracts have taken direction from weakening gas prices this morning, while a rise in oil and coal has resulted in small gains for some contracts on the far-curve. Warmer weather could result in a rise in cooling demand which has limited the losses on the prompt, while the front-month contract displays a sizeable decrease.
Brent 1st-nearby prices display a strong increase this morning and currently trade at around $47.1/b, with comments made by the president of OPEC in regards to stabilising the oil market helping to create market optimism.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased slightly - closing at 39.95ppt and £42.56/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
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