|Market Close||Market Close|
|Gas contracts continued to rise on Friday with an expected drop in temperatures this week the main market driver, outages at the Easington terminal and the Skarv gas field also offered further support to the near-curve. Oil prices also displayed a bullish trend for the majority of the session which helped to lift contracts on the far-curve.||Movement on the power curve varied on Friday with the Day-Ahead contract shedding from its price due to a strong wind generation forecast. Far-curve contracts moved higher on the back of stronger Brent and gas, while the near-curve displayed mixed changes.|
|Market Open||Market Open|
|The temporary rise in demand, caused by cooler weather continues to apply upward pressure to the gas curve this morning, with levels expected to be 24mcm higher than Friday. However, the UK gas system has opened long with Langeled flows increasing by 12mcm as the outage at the Skarv gas field was resolved. Storage withdrawals are also higher and the LNG outlook is healthy with three deliveries expected to arrive at South Hook this week; potentially weighing on near-curve prices this afternoon.||Power contracts rallied higher this morning as most contracts followed their gas counterparts with an expected rise in consumption supporting the prompt. Weaker Brent helped to limit the gains further along the curve but the overall sentiment remained bullish.|
Brent 1st-nearby prices have recorded a loss over the weekend and have dropped back below $45/b. After last week's EIA report and worker strikes in Kuwait the market has calmed somewhat and oversupply concerns have come back to the forefront.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 34.02ppt and £36.85/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