|A drop in coal and mild weather helped to exert bearish pressure across the gas curve yesterday afternoon. Temperatures remained above average yesterday and were forecast to stay mild today, reducing LDZ demand. Wind levels were also set to increase today, meaning less reliance on gas-fired power generation.
|Power prices followed gas yesterday and corrected down in the afternoon, with an expected rise in wind generation helping the prompt close at a discount. Bearish pressure was applied to the far-curve by weaker coal, while Brent was stable. Meanwhile, yesterday’s Budget announcement had little impact on prices as currency movements were limited.
|An unplanned outage at Oseberg is set to last for another 5 or 6 days, helping the prompt open at a premium this morning. Norwegian flows into the UK are down as a result of this outage and Russian flows into Europe are also reduced. The back of the curve displays small gains, following downward movement on coal and oil markets.
|Near-curve power prices have climbed higher this morning as wind levels are set to fall tomorrow and colder weather is forecast to hit the UK next week. Contracts further out display small losses on the back of weaker coal and oil markets but a slight drop in the Pound has provided some resistance.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display a minor decrease since yesterday’s open and trade just above $63/b this morning following a mixed EIA report. The report showed a drop in US crude oil stocks but output continued to increase.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 49.02ppt and £47.55/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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