|Market Close||Market Close|
|Gas contracts displayed mixed movement on Friday with weakening oil prices applying downward pressure on the far-curve. However, weak economic data coming out of the UK and another drop in the Pound helped to support prices at the front of the curve. Low Norwegian flows and reduced LNG-send-outs also tightened supply and contributed to the gains.||Movement on the power curve was largely bullish on Friday with a rise in gas contracts in the afternoon and a slight drop in wind generation over the weekend helping towards the gains. However, a decrease in oil and coal prices helped to limit bullish movement on the far-curve.|
|Market Open||Market Open|
|Norwegian imports are expected to remain low this week due to the on-going outage at the which has been extended until the 8th of August; with further outages at the Kvitebjorn field and Karsto processing unit. These supply constraints have helped to lift prompt gas contracts this morning but a balanced system helped to restrict the upward movement. Further out, weakening oil prices helped to restrict the bulls and the overall outlook is stable.||Power contracts have opened at a premium this morning with direction coming from gains on the gas market and a rise in coal prices. Temperatures are set to fall towards the seasonal norm this week which should limit demand, while wind generation will also remain healthy; restricting some of the upward movement.|
Brent 1st-nearby prices have recorded a small loss over the weekend, trading at around $46.65/b this morning. A stronger US Dollar, the on-going effects of the UK's vote to leave the EU and a rise in US oil inventories are the main factors behind the current bearish sentiment.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas was unchanged, while commercial electricity recorded a small gain - closing at 43.05ppt and £44.15/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