|Market Close||Market Close|
|Gas prices recorded strong gains in the morning following the announcement of production cuts at the Groningen facility in Holland for start of the 2015-2016 gas year. However, the Dutch Council of State will allow output to continue at 33bcm until then in case of strong demand over the winter period; resulting in significant downward movement across the curve.||Near-curve gas prices have decreased this morning as the UK gas system is long following a sharp rise in UKCS output as numerous outages have been resolved. Temperatures are forecast to fall over the weekend but this cold stint is expected to be temporary with milder weather set to return next week; resulting in a bearish outlook.|
|Market Open||Market Open|
|An upward revision in temperatures for next week helped to weigh on power contracts yesterday with weaker gas also a factor. Day-Ahead was the only contract to display a gain, moving £1.65/MWh higher on the back of a lower wind generation forecast.||Power contracts continue to track the movement of gas this morning and have posted sizeable losses. The prompt displayed the smallest decrease as an expected drop in wind production and a rise in demand provided resistance.|
Brent 1st-nearby prices display a rebound this morning but still remain below $45/b due to on-going oversupply concerns and rising global production.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 36.43ppt and £38.85/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