|Gas contracts recorded losses on Monday with a milder weather forecast resulting in bearish movement on the near-curve. Improved imports from Norway and mainland Europe resulted in a long gas system which helped the prompt to shed from its price. However, an increase in oil prices restricted some of the downward movement on the far-curve.
|Prompt power prices followed their gas counterparts and moved down yesterday, with a milder weather outlook also helping to weigh on contracts. Further out, the trend was largely bullish with optimism in regards to a potential cut in oil output resulting in stronger Brent.
|The UK gas system has opened short this morning as flows via the IUK pipeline have decreased, while output at the St Fergus terminal is limited due to maintenance. This weaker supply picture has led to gains at the front of the curve, while wind levels are also set to drop which will increase CCGT generation. Further out, prices continue to be pushed higher by rising Brent.
|Most power contracts have shed from their price this morning with bearish pressure provided by losses on the French market and a lower demand forecast. Issues in regards to French nuclear power remain a supportive factor with the possibility of a new outage later in the month, although some reactors should return online in the coming weeks.
Brent 1st-nearby prices recorded significant gains yesterday as expectations of an agreement between OPEC members to freeze output continued to offer support; Brent currently sits just above $49.1/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity moved down - closing at 44.03ppt and £44.97/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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