|Market Close||Market Close|
|A weaker LDZ demand outlook in the short term continued to act as the main market driver for the near-gas curve yesterday and the majority of contracts stabilised. Meanwhile, the system was long despite further UKCS constraints and low Norwegian flows. Further out, prices displayed little movement as a bullish oil market provided support.||A significant drop in wind generation was forecast for today which helped Day-Ahead power rally higher on Thursday. A mild weather outlook helped the rest of the near-curve to decrease, while prices further along the curve were more resilient due to strengthening coal and oil markets.|
|Market Open||Market Open|
|Temperatures are forecast to remain mild for the next fortnight but this has failed to stop some near-curve contracts moving higher. Bearish sentiment was capped by ongoing supply constraints, although the system is 16mcm long due to weaker demand. Mixed movement can be observed at the back of the curve, with a rising oil market continuing to provide bullish pressure.||Wind levels are expected to pick up over the weekend after plummeting today and this has helped the prompt shed from its price. Heating demand is expected to remain below the seasonal norm for the next couple of weeks, helping towards some losses, while movement at the back of the curve is minimal with support provided by a rise in coal prices.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent recorded further gains yesterday following a decrease in US crude inventories; prices reached their highest level since December 2014. However prices have corrected down this morning and have settled back around $70.5/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas moved slightly higher, while commercial electricity was unchanged – closing at 46.75ppt and £46.52/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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