|Market Close||Market Close|
|Gas prices recorded losses yesterday afternoon, wiping out some of Friday's gains with weaker demand and falling oil the main market drivers. Gas demand in the UK fell by 20% compared to Friday's levels as a result of milder weather and improved renewable generation. The UK gas system was oversupplied throughout the session despite a 20mcm drop in Langeled flows.||Power prices moved down on Monday as generation levels were healthy, demand was down and fuel prices weakened. The February contract ended the session at a record low as temperatures are expected to remain 4 °C above the seasonal norm for the rest of the month, which also weighed on the prompt.|
|Market Open||Market Open|
|Another drop in oil prices has pressured down gas contracts this morning, while a milder weather forecast also remains a factor. However, the supply picture is weaker and the gas system is close to balance this morning as demand levels are slightly higher and storage withdrawals are close to zero.||Peak wind generation is expected to rise from 2.7GW to in excess of 5GW which has resulted in further losses on the prompt this morning. Further along the curve, contracts have followed their weaker gas counterparts with further direction coming from falling oil.|
Brent 1st-nearby prices decreased yesterday afternoon following a rebound on Friday and currently trade below $30/b. Friday's upward movement was the result of a market correction but fundamentals remains bearish and prices have reverted back to last week's downward trend.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 29.84ppt and £33.90/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