|Temperatures are expected to remain below average until the end of the week at least which offered support to near-curve gas contracts yesterday. Supply levels remained comfortable but stronger demand tightened the system. Further along the curve prices took direction from rising oil contracts.
|Near-curve power prices displayed gains during Monday's session on the back of the colder weather forecast for this week. The rest of the curve was influenced by stronger gas and oil markets and also increased. The Day-Ahead contract added over £2/MWh to its price due to above average consumption levels and a weaker wind generation forecast.
|The UK gas system is still oversupplied despite rising demand levels as flows into the UK remain healthy which could result in some downward movement later in the session. The cold weather forecast continues to offer support but oil prices are generally stable.
|Wind generation has fallen below 1GW today, while power demand continues to rise due to cold weather; resulting in upward movement across the power curve. UK electricity supply is forecast to tighten further tomorrow, with only 3GW of surplus generation expected.
Brent 1st-nearby prices inched higher yesterday and trade just above $34/b this morning with the prospect of production cuts by major oil producing countries, however, the recent IEA report helped prices stabilise.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity displayed a gain - closing at 31.35ppt and £35.30/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