|A colder weather forecast for the start of this week forced near curve gas contracts higher on Monday, with maintenance work in Norway also a supportive factor as imports into the UK have dropped. The Euro strengthened against the Pound following the first round of results in the French presidential election, also contributing the gains. However, some contracts on the far-curve recorded a loss with direction coming from a weaker oil market.
|The majority of power contracts moved higher yesterday on the back of a weaker Pound and rising gas. A drop in oil prices helped the prompt move down and also limited some of the gains on the far-curve. Temperatures are expected to rise at the start of May which should result in some downward movement as the week progresses.
|Gas demand is expected to rise across Europe tomorrow due to below average temperatures but this has done little to restrict bearish movement across the curve this morning. Warmer weather has been forecast in the UK next week and a weakening oil market has pressured down contracts.
|Power contracts have moved down this morning with direction coming from losses on the coal, gas and oil markets. The prompt is the exception to the bearish trend as cold weather should lead to a sharp rise in consumption. Meanwhile, wind generation levels are strong which has resulted in a decrease in more expensive gas-fired generation.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices continue to move down this morning and now trade at $51.7/b. Losses have been posted in six consecutive sessions as traders have doubts about an extension of the OPEC deal.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 43.07ppt and £42.36/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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