|Market Close||Market Close|
|Gas prices found support from an increase in coal and power contracts yesterday, with weak wind production and low nuclear availability resulting in an increased reliance on gas-fired power generation. The front of the curve also found additional support from an expected drop in temperatures next week. Elsewhere, the LNG outlook is forecast to remain tight for the rest of this month and throughout November due to limited deliveries.||Gains can be observed across the gas curve once again this morning as the supply/ demand picture is largely unchanged. A slight increase in temperatures over the next few days has limited some of the upward movement at the front of the curve but the mild weather is expected to be short-lived.|
|Market Open||Market Open|
|Weak generation levels helped to push power contracts higher on Monday with safety constraints at French nuclear reactors and low wind generation resulting in an increase in gas and coal power. The cost of APi2 coal continued to move higher which supported the far-curve, with weakening Brent having little impact.||A cold start to November is expected which has helped to limit some of the losses on the near-curve this morning. However, a milder forecast for the next few days has helped the Day-ahead contract to open at a strong discount. Low nuclear availability in France continues to support winter contracts but a drop in Brent and Api2 coal has helped to weigh on some prices on the far-curve.|
Brent 1st-nearby prices moved down yesterday and trade at around $51.5/b this morning with downward pressure provided by the comments made in Iraq in regards to being exempt from proposed production cuts.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity was unchanged - closing at 46.33ppt 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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