|Movement on the gas curve was largely bearish on Wednesday as above average temperatures were forecast for the rest of the month which will lead to a drop in residential demand. Supply levels were constrained by an outage in Norway resulting in a short system, restricting some of the losses, while weaker Brent weighed on the far-curve.
|Power prices tracked the movement of gas and were influenced by healthy wind generation, a milder weather outlook and weaker oil prices. The prompt was an exception to the bearish trend as wind levels were set to drop on Saturday. In other markets, a rebound in coal offered some support at the back of the power curve but the overall sentiment remained bearish.
|The prompt has moved down this morning as milder weather has reduced LDZ demand and comfortable wind generation has resulted in a drop in CCGT demand. However, the system remains 11mcm short due to unplanned outages at Heimdal and St Fergus which will last around a week. Meanwhile, oil prices have rebounded which has restricted bearish movement at the back of the curve.
|Wind levels remain healthy this morning which has helped to apply downward movement on the prompt, while an uptick in temperatures has contributed to losses on the rest of the near-curve. Movement further along the curve is more varied with support provided by increases on coal and oil markets.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have moved higher this morning due to a decrease in US production levels and an attack in Syria by Turkish forces on Kurdish militia, with oil pipelines in close proximity.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 47.78ppt and £47.08/MWh, respectively.
Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.
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