|Gas prices continued on a bearish trend on Monday as a mild weather/ weak demand outlook and falling oil prices weighed on contracts across the curve. Meanwhile, the gas system was short throughout the session due to an outage at the Rough storage facility and a rise in gas-fired power generation, however, this did little to lift prices.
|Numerous losses were observed on the power curve yesterday as consumption levels remain well below average due to unseasonably mild temperatures. Weaker oil and gas prices also provided additional downward pressure further along the curve, with Brent nearing an 8-year low.
|LNG send-outs and Norwegian imports have decreased this morning but the system is oversupplied as gas-fired power generation is much lower and residential demand is also weaker. Prices have moved down on the back of this improved supply picture, with above average temperatures expected to continue for the rest of the month at least.
|Power contracts have tracked the movement of gas this morning, displaying a series of losses helped by mild weather and stable generation. The prompt has opened at a bigger discount than its gas counterpart as wind generation is set to remain above 4.5GW for the rest of the week.
Brent 1st-nearby prices nearly dropped to their lowest level since 2008 yesterday but have displayed a rebound overnight to trade just below $38/b with fundamentals generally unchanged.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a small loss - closing at 35.14ppt and £37.95/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