|Near-curve gas prices increased to their highest levels since February as temperatures are set to turn cold next week, increasing demand levels. The prompt found additional support from an extension to the outage at Oseberg in Norway, while the LNG outlook also remains weak. Meanwhile, coal prices strengthened, assisting prices further along the curve in moving higher.
|An expected drop in wind generation supported Day-Ahead power on Thursday, with a downturn in temperatures next week contributing to gains on the rest of the near-curve. Bullish oil and coal helped far-curve prices move higher, with an outage at a US/ Canadian pipeline helping Brent hit a 2-year high.
|Day-Ahead gas has climbed higher this morning as cold weather is expected to hit the UK over the next fortnight, raising residential demand, while weak wind levels have increased the need for CCGT generation. Norwegian flows are still down but the system remains 15mcm long, limiting some of the gains. Further out, prices display gains due to upward movement on coal and oil markets.
|Fundamentals are largely unchanged today with a cold weather forecast and weaker wind levels helping towards price increases on the near-curve, with stronger gas contracts also a factor. The prompt has held its price as weekend temperatures will remain rather mild but fuel markets display further gains, lifting far-curve prices.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have increased by $0.60/b with support coming from an outage at the Keystone pipeline in Canada which has restricted output; Brent currently trades at $63.61/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 49.54ppt and £47.93/MWh, respectively.
Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.
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