|Market Close||Market Close|
|Yesterday’s weather forecasts pointed towards cold temperatures for a 2-week period, starting from the end of this week; this will increase residential demand and resulted in gains at the front of the gas curve. LNG send-outs to Europe are also lower, providing additional support, while the far-curve was pushed higher by rising coal and oil.||The near power curve was also dictated by the cold weather outlook and an expected rise in wind and solar generation today failed to cap gains on the prompt. Sentiment at the back of the curve was also unchanged with direction coming from bullish coal and oil markets.|
|Market Open||Market Open|
|Demand levels are 20mcm below the seasonal norm this morning and the system is 21.6mcm long, however, prices remain bullish due to the expected cold spell which is expected to continue into March. Flows via Bergermeer are also lower and fuel markets are supportive but a stronger Pound has helped to limit some of the upward movement further along the curve.||Despite healthy renewable generation, gains can be observed across the near curve this morning as the sustained period of cold weather will increase heating demand. Meanwhile, the Pound strengthened against the Euro following some optimism in regards to the UK’s access to the single market, although gains could still be seen at the back of the curve.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display further gains this morning with a recovery on the stock market, a stronger Dollar and reduced oil shipments from Canada to the US all adding to the bullish sentiment.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity recorded increased – closing at 47.33ppt and £46.84/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