|An upward revision in the short term weather forecasts helped to weigh on contracts at the front of the gas curve yesterday, with Front-Month and the prompt showing the biggest losses, assisted by a long system. Further out, prices were pressured down by weaker coal and carbon, ignoring a small gain by Brent.
|Power prices moved down on Monday on the back of a weaker demand outlook, with mild weather expected over the weekend. Power prices followed their gas counterparts, with weaker coal and carbon markets also contributing to the bearish sentiment.
|The UK gas system is balanced this morning with a rise in demand offset by improved wind generation. Gas prices are generally bullish this morning as coal and carbon display a rebound, while oil remains stable.
|Power prices have climbed higher this morning with support provided by an increase on coal and carbon markets. Colder weather has also lifted demand this morning, although wind levels have improved to limit the impact of this; the gains have also been capped by a mild weather outlook for the rest of the month.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices show little movement at the start of this week, rebounding slightly but remain around $66.8/b. Potential OPEC cuts have offered support but further weakening of global financial markets could trigger another oil sell-off.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased slightly, while commercial electricity moved higher – closing at 60.88ppt and £60.40/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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