|Market Close||Market Close|
|Losses on the oil market pressured down far-curve gas contracts yesterday afternoon but movement at the front of the curve was generally bullish. Norwegian exports into Europe decreased, while a cooler weather forecast for the rest of the week helped to push the prompt higher. Elsewhere, worries in regards to output at the Groningen facility was a point of discussion at a parliament meeting in Holland.||Power contracts displayed gains across the curve on Wednesday with the Day-Ahead contract recording a huge increase of over 200% due to a weak supply picture, with the UK heavily relying on expensive gas and coal-fired generation. The upward movement filtered through to the rest of the curve, with a drop in oil contracts having little effect.|
|Market Open||Market Open|
|Downward movement is evident across the gas curve this morning with a rise in Norwegian output helping to weigh on the prompt. The UK gas system remains long despite a drop in UKCS production as a result of an unplanned outage at the St-Fergus terminal. Demand levels are also higher due to cooler weather but this will be offset by the current oversupply and the outlook is stable.||The power curve is attempting to correct yesterday's strong gains this morning, with the prompt recording a loss of over £140/MWh. The usual drop in industrial demand on Fridays, cooler temperatures and a slight rise in wind generation have all helped to apply downward pressure on the near-curve. Further out, contracts have followed the movement of their weakening gas counterparts.|
Brent 1st-nearby prices moved down yesterday following the release of the latest EIA report, erasing some of the morning's gains which continued from Tuesday's session; Brent currently trades just above $48/b.
1-year forward prices
Market close data has revealed that the 1-year forward price commercial gas decreased, while commercial electricity moved higher - closing at 36.98ppt and £43.20/MWh, respectively.
Click graph to enlarge
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