|The Bacton Seal terminal suffered an unplanned outage yesterday which reduced UKCS production, with flows via St Fergus also limited due to maintenance. This resulted in a rebound on the near-curve, while rising oil and coal prices were supportive further out.
|A milder weather outlook and bearish movement on the French power market helped to weigh on prompt power contracts on Tuesday. These losses were somewhat limited in the afternoon due to a rebound in gas contracts following an unplanned outage, while APi2 coal remained supportive.
|Flows via the Bacton Seal terminal are still at 0mcm this morning and the UK gas system is balanced as a result, although Total expects an improvement in UKCS production in the next 24-36 hours; higher imports from Europe have stopped the system from falling short. This weak supply picture has pushed prompt gas contracts higher, with the gains filtering through to the rest of the curve.
|Near-curve gas contracts display losses this morning as the French market has weakened further. However, the back of the curve continues to climb higher with direction coming from stronger gas, coal and oil contracts.
Brent 1st-nearby prices reached $49.96/b yesterday but have corrected down this morning to trade at $49.02/b. Optimism surrounding the freeze deal is supporting the market at present but there are some doubts about how significant the production cuts will be.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 44.88ppt and £45.04/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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