|Market Close||Market Close|
|Healthy supply levels and a stronger Pound helped to pressure down gas prices yesterday. Numerous LNG deliveries are expected to arrive in the UK this month which resulted in high send-outs. Norwegian supply was also comfortable despite the outage at the Heimdal platform and countered a slight rise in demand levels.||The UK gas system remains oversupplied this morning with Norwegian flows increasing further as the outage at Heimdal has been resolved, resulting in increased output via the Vesterled pipeline. This has helped the near gas curve record sizeable losses with a milder weather forecast also offering bearish pressure, while weakening Brent continues to weigh on contracts further out.|
|Market Open||Market Open|
|Power prices decreased on Wednesday with falling gas the main market driver; Summer-16 posted a loss of £0.40/MWh and was one of the session's biggest movers. A stronger Pound and another drop in Brent also provided bearish pressure.||Wind generation is expected to reach high levels later in the month which has helped contracts on the near-curve open at a discount this morning. Solar power also remains above the seasonal norm which has reduced the UK's use of more expensive generation methods. Another drop in Brent and weaker gas prices have also applied downward pressure across the curve.|
Brent 1st-nearby price continue to follow a downward trend but still remain above $49/b this morning; another rise in US crude oil stocks resulted in yesterday's losses.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity posted a small gain - closing at 42.43ppt and £40.81/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
Click to enlarge graph