|A milder weather forecast for the rest of this month helped to weigh on near-curve gas contracts yesterday. Additional bearish pressure was provided by healthy Norwegian supply as two unplanned outages were resolved, however, a weaker Pound restricted the losses somewhat.
|Temperatures for the rest of the month were revised higher over the weekend which led to losses for power contracts yesterday, assisted by their weaker gas counterparts. Wind generation is expected to improve later in the week with a drop in APi2 coal also helping to weigh on the curve.
|Gas demand is expected to increase slightly in the coming days which has helped prompt contracts move higher this morning. Meanwhile, the UK gas system has opened short due to an outage which has reduced flows via the Bacton Seal terminal, while the LNG outlook also remains weak.
|The power curve displays gains this morning and has tracked the movement of gas, with an expected drop in temperatures over the next few days also a factor. Steady wind generation has helped to limit the upward movement but Theresa May's speech later today is expected to cause market volatility.
Brent 1st-nearby prices remain below $56/b this morning as the market remains uncertain, as efforts made by Saudi Arabia to cut production have been offset by a rise in US and Libyan output.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved higher - closing at 48.78ppt and £48.55/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
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