|Market Close||Market Close|
|Near-curve gas contracts moved higher on Thursday as maintenance at a major Norwegian gas field is to be extended which will result in short supply. This on-going maintenance will reduce Norwegian flows by 26.5mcm from the 20th of June for seven days. Movement further along the curve varied with weaker oil prices weighing on some contracts.||Wind generation remained low yesterday which helped the prompt add to its price, while a rise in gas contracts supported the rest of the near-curve. Meanwhile, an increase in aPi2 coal prices resulted in gains further along the curve.|
|Market Open||Market Open|
|The drop in Norwegian imports next week continues to push gas contracts higher this morning with gains observed across the curve. Another drop in oil prices restricted some upward movement on the far-curve but the overall sentiment remained bullish. Traders also await a decision on whether output at the Groningen gas field in Holland will be cut further, with a preliminary verdict expected in three weeks.||Power contracts have also opened at a premium this morning with stronger gas and coal markets offering support. Demand levels are also on the rise which further fuelled the bullish movement on the near-curve, with rumours that thermal plants may be brought online to meet demand.|
Brent-1st nearby prices have dropped by $0.47/b and currently trade below $48/b as fundamentals are largely unchanged. In other news, the Venezuelan oil minister is keen to re-open talks in regards to the 'freeze deal' although it seems unlikely at this stage following failed talks in April.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 39.08ppt and £40.83/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