|Losses were displayed across the gas curve yesterday following a significant improvement in Norwegian and LNG flows. Bearish pressure was also provided by an expected rise in temperatures next week and a stronger Pound, while falling Brent weighed on contracts further along the curve.
|Weaker gas contracts transferred to the power curve yesterday, while the Pound also strengthened against the Euro, further weighing on some prices. An improved wind generation forecast and an expected rise in temperatures also contributed to downward movement on the prompt.
|LNG output remains healthy this morning but another unexpected decrease in Norwegian flows via the Langeled pipeline has resulted in a short UK gas system. However, the overall supply picture remains healthy for the short-term which has led to further decreases on the near gas curve. Meanwhile, Brent has recorded another loss, restricting any upward movement on the far-curve.
|Power contracts continue to fall this morning, following their weakening gas counterparts and a drop in coal prices. Coal prices moved down despite a large coal-fired facility being taken offline yesterday due to maintenance. Improved renewable generation and a warmer weather forecast for next week also weighed on the Day-Ahead contract.
Brent 1st-nearby prices have displayed a loss of almost $1/b to trade at $48.15/b this morning. An increase in US crude oil stocks and a stronger Dollar were the main factors behind the drop in price as the situations in Nigerian and Venezuela have not worsened.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 34.37ppt and £37.23/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
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