24th September 2013 | Posted by: Daniel Birkett | Market Analysis

Yesterday, low demand and strong supply led to a comfortable UK system, which managed to inject significant gas volumes into storages. This helped push NBP spot and near curve prices lower. Above-normal temperatures should continue to weigh on European gas consumption today. This could push October 2013 prices further down today, unless Norwegian supply falls again. Today's prices can also be found in an easy to read table on our 'current UK energy price' page.

How did the energy markets close?

Gas contracts made some losses yesterday with price drops being seen around 0.65ppt.   This was due to lower than anticipated demand, caused by the surprise warm weather front in the last few days.   Temperatures are expected to continue to be warm, leading to further possible price drops later in the week. The power curve mirrored the gas prices in that they too have fallen.   An improved nuclear supply generation has also played a part in recent losses.

How did the energy markets open?

Day ahead gas prices rallied, by 0.25ppt while the near curve dropped.   The prices moved along quickly yesterday, despite the gas flows being slightly weaker. Day ahead power prices rose by £0.45/MWh as wind generation dropped drastically, bad news for buying pricess. The far curve were influenced by bearish Brent prices.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity made a loss - closing at 66.31ppt and £51.43/MWh, respectively. This can be seen in the graph below. Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.

Latest Brent Crude Prices

Crude markets softened yesterday making Brent 1st nearby and WTI both edged down -$1/b on Tuesday. Brent 1st nearby is traded slightly above $108/b this morning and transatlantic spread has widened to - $4.6/b.