|Near-curve gas contracts decreased on Monday as supply levels improved and helped the system remain long throughout the session, with warmer weather also leading to weaker demand levels. Norwegian imports into the UK via the Langeled pipeline strengthened at the end of last week, while gas stocks are higher than expected. However, bearish movement further along the curve was slightly restricted by rising Brent.
|The power market tracked the downward movement of gas yesterday with improved supply levels the main factor behind this. Stronger oil and coal helped to keep losses on the far-curve to a minimum, while an increase in temperatures had very little impact.
|Gas contracts have added to their price this morning with another jump in oil prices contributing to upward movement on the far-curve, with additional bullish pressure provided by a strengthening Dollar. Prompt prices also inched higher despite a drop in demand as a result of improved temperatures.
|Movement on the power curve this morning is bullish with the exception of the front-month contracts. The rest of the curve has instead followed the direction of their strengthening gas counterparts, with rising oil contacts also offering support.
Brent 1st-nearby prices continue to strengthen following comments made by the president of OPEC in regards to taking action to help stabilise the oil market; Brent currently trades just above $48.4/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 40.56ppt and £43.00/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