|Gas contracts added to their price on Friday as the UK gas system was short due to a drop in Norwegian flows. The significant reduction in imports into the UK was caused by unplanned outages at the Kvitebjorn and Kristin fields. Upward movement on the oil market also transferred to gas and far-curve contracts closed at premium.
|Power contracts displayed small gains on Friday with upward pressure provided by a short gas system and a drop in wind generation. However, an improved solar generation outlook for the weekend and the start of this week offered some resistance. Contracts further along the curve found support from increases on the oil market.
|The system remains short this morning and continues to push near-curve contracts higher, although a warm weather outlook for this week has helped to curb some of the gains. LNG send-outs are low but Norwegian flows are slowly recovering, with a current flowrate of 18mcm via the Langeled pipeline.
|Power contracts have tracked the bullish movement of gas and gains can be seen across the curve. Wind levels have dropped significantly compared to last week but solar power is strong, although these levels are expected to reverse later in the week. An increase in coal has provided additional support to the far-curve, while the oil market is stable.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices climbed higher on Friday but have stabilised just below $47.3/b this morning. A further 6 rigs are active in the US and high production in the country continues to offset the effects of OPEC cuts.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 42.10ppt and £42.83/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
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