|Bearish movement could be observed across the gas curve on Wednesday, with comfortable supply levels and a milder weather outlook weighing on prices at the front of the curve. Meanwhile, the Pound strengthened against the Euro, helping towards downward movement at the back of the curve.
|Like gas, power prices inched down thanks to comfortable wind generation and an expected drop in heating demand for the rest of the month. A stronger Pound also had an impact on the far-curve, as did a drop in coal prices, while the oil market was stable.
|Warmer weather is expected across the UK and Europe over the coming weeks which will result in reduced LDZ demand; contributing to further price drops at the front of the curve this morning. A drop in wind generation has led to a 10mcm rise in CCGT demand, while supply has been impacted by an outage in Norway, although this is expected to be resolved by tomorrow.
|Wind levels are expected to rise tomorrow which has helped the prompt record a strong loss, with the expected rise in temperatures weighing on the rest of the near curve. Movement further along the curve is minimal with coal recording a small loss and oil prices moving slightly higher.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent prices have increased slightly but remain between resistance levels with no real market driver at present, although that couldchange when the EIA report is released later this afternoon.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 47.97ppt and £47.18/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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