|Market Close||Market Close|
|The UK gas system moved into oversupply yesterday which applied downward pressure on the near-curve in the afternoon, during a session of mixed movement. The system was 20mcm long, helped by weaker demand and resulted in a loss on the prompt. Further out, an increase in oil prices helped contracts climb higher, ignoring a rebound in the Pound.||Power contracts displayed gains on Wednesday as fundamentals became rather bullish, with an above average temperature forecast for next week helping the front-month contract add £0.20/MWh to its price. Warmer weather resulted in a rise in cooling demand which supported the prompt, with wind levels also expected to fall today, while the far-curve was supported by rising gas and oil.|
|Market Open||Market Open|
|A drop in Norwegian imports and increased exports to Belgium via the IUK pipeline has tightened the gas system this morning, offering support to near-curve contracts. Meanwhile, movement further along the curve is generally stable, although Brent continues to display a bullish trend.||Temperatures remain above the seasonal norm and are expected to continue next week which has resulted in gains across the near-curve this morning as cooling demand is high. The rest of the curve continues to track the bullish movement of gas and Brent, while APi2 coal has also displayed a gain.|
Brent 1st-nearby prices have recorded another gain this morning and now trade just below the $50/b mark. The recent EIA report was the cause of this latest increase as it displayed a decline in crude oil stocks.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 41.04ppt and £43.25/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