|Market Close||Market Close|
|Weaker Norwegian flows and an increase in coal-fired power generation (on the back of higher cooling demand due to warm temperatures) lifted gas contracts on the near-curve yesterday. Elsewhere, there are no LNG deliveries scheduled to arrive in the UK until the 27th of July which resulted in a drop in send-outs, also offering further support to the curve.||Warm temperatures continued to lift consumption levels yesterday which helped contracts on the near-curve to move higher, although healthy wind generation resulted in a small downward correction in the afternoon. The rest of the curve was supported by rising gas contracts on the back of supply constraints.|
|Market Open||Market Open|
|The UK gas system has opened short this morning as numerous outages continue to reduce UKCS production and Norwegian flows are low due to maintenance at the Heimdal facility. In addition to these weaker supply levels, exports to Belgium also remain high, as does CCGT demand. As a result gains can be observed across the curve this morning, with a rebound in Brent also a factor.||Power contracts tracked the bullish movement of their gas counterparts this morning and added to their price. The prompt is the exception to the upward movement as temperatures are forecast to fall back towards the seasonal norm at the weekend, although wind generation is expected to decrease tomorrow. Meanwhile, a rise in coal and oil prices has provided upward pressure further along the curve.|
Brent 1st-nearby prices have increased by over $0.50/b following the release of this week's IEA report which displayed another drop in crude oil stocks.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased slightly - closing at 44.36ppt and £43.40/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