|Gas prices moved down on Friday on the back of a milder weather outlook for the weekend and at the start of this week, with a long gas system also a factor. The system was long in the afternoon following an increase in Norwegian imports and healthy Dutch flows via the BBL pipeline which hit a six-month high. A stronger Pound also helped to apply some downward pressure, although the losses were restricted by high coal prices.
|The power curve displayed mixed changes on Friday with gains observed at the front of the curve, while losses were recorded further out. Concerns regarding French nuclear power over the winter period remain a bullish factor, with weak wind generation also offering support to prompt prices. Further out, contracts followed the movement of their weaker gas counterparts, despite rising coal costs.
|Temperatures are expected to remain above the seasonal norm this week which will weigh on demand levels, restricting upward movement at the front of the gas curve. However, low levels of wind in the UK means gas-fired power generation remains high. The LNG outlook for the coming month is also weak, while strengthening coal continues to support the far-curve.
|Fundamentals are little changed this morning and the prompt continues to display strong upward movement due to weak generation levels. An improved outlook for the next few weeks has helped front-month to record a loss, while most contracts at the back of the curve have opened flat.
Brent 1st-nearby prices are stable this morning due to market uncertainty ahead of the OPEC meeting at the end of November and with overall fundamentals generally unchanged; Brent currently trades just below $52/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved higher - closing at 46.68ppt and £47.69/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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