|Market Close||Market Close|
|Winter gas prices displayed a downward correction yesterday following Friday's surge; last week's increase was a result of Centrica's announcement regarding the long-term outage at the Rough storage facility. However, contracts on the near-curve moved higher as the UK gas system fell short due to a rise in exports, weaker Norwegian flows, a drop in UKCS output and lower LNG send-outs.||Power contracts continued to inch higher on Monday with direction coming from movement on the gas curve. The upward movement was more evident at the front of the curve as oil and coal prices decreased, providing resistance for some contracts. The Pound Sterling also showed signs of recovery against the Euro which provided additional bearish pressure.|
|Market Open||Market Open|
|UKCS production remains low this morning due to outages; the North Morecambe and the J-area gas fields are both expected to return online tomorrow. LNG send-outs are also weaker than last week and the UK gas system is undersupplied, resulting in gains on the near gas curve. Meanwhile, movement further along the curve is generally stable with coal and oil contracts weakening slightly.||Healthy renewable generation has helped to weigh on the Day-Ahead contract this morning but an increase in air conditioning demand due to warm temperatures has limited losses on the rest of the near-curve. Further out, a drop in APi2 coal and Brent has helped to keep upward movement at a minimum.|
Brent 1st-nearby prices decreased yesterday and trade below $47/b this morning as tensions have eased in Turkey and there should be no disruptions to oil shipments from Russia and Iraq.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased slightly, while commercial electricity moved down - closing at 44.13ppt and £43.85/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