|Gas prices displayed mixed movement on Wednesday as a rise in Norwegian imports, following the end of maintenance helped to weigh on near-curve contracts. The improved supply picture erased some of the gains recorded in the previous session on the back of another proposed cap at the Groningen gas field. Meanwhile, a late rise in oil prices offered support to contracts on the far-curve.
|Like gas, movement on the power curve varied yesterday with weak wind generation limiting any downward movement on the prompt. The rest of the near-curve tracked their gas counterparts and moved down, while some far-curve contracts were pushed higher by a rise in coal.
|Norwegian gas flows continue to rise this morning which has helped to balance gas systems across Europe, resulting in price-drops on the near-curve. Elsewhere, maintenance has begun at the interconnector pipeline, however, exports to Belgium have been close to zero in recent days and prices are unaffected. Further out, contracts have followed the movement of falling Brent.
|A drop in coal and a weaker gas market pressured down contracts on the power curve this morning. Wind generation remains low and demand levels are below the seasonal norm but this did little to restrict any downward movement.
Brent 1st-nearby prices continue to display bearish momentum, falling to around $48.3/b this morning, a loss of over $1/b from yesterday's opening. A decline in US oil production and concerns regarding the upcoming 'Brexit' vote continue to weigh on prices.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 38.20ppt and £40.23/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