|The UK gas system was short throughout yesterday's session which contributed to gains on the near-curve. Colder temperatures resulted in a rise in demand, with weak wind generation also increasing gas usage, while LNG send-outs remained low. Further out, contracts were generally bearish on the back of weakening coal and oil.
|Fundamentals remained bullish on Thursday and prices moved higher despite a slight downward correction in the morning. Low wind generation increased the UK's reliance on gas-fired power, while workers at coal plants in France took strike action; taking 800MW of capacity offline. Planned outages at French nuclear reactors this winter also continued to offer support.
|Temperatures are expected to stay below average in November with the LNG outlook also expected to be tight, with only two deliveries expected to arrive from Qatar next month. This weak supply/ demand forecast has helped to support prompt contracts this morning despite an oversupplied gas system. The rest of the curve displayed losses with falling coal and oil the main market driver.
|Wind generation remains low this morning and supply has been reduced further as extra backup generation is required in France. Movement on the curve is generally mixed with some contracts taking direction from the weak supply/ demand picture, while others were pressured down by a drop in APi2 coal and Brent.
Brent 1st-nearby prices recorded a loss yesterday following comments made by Russian oil firm, Rosneft in regards to increasing its production levels; the US Dollar also strengthened and contributed to falling Brent.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher - closing at 45.68ppt and £47.42/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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