|A warm weather outlook and an expected rise in Norwegian & LNG flows in the coming days helped to pressure down near-curve gas prices on Tuesday. However, weak wind levels led to higher gas-fired power generation, limiting losses on the prompt, while the far-curve displayed little movement.
|Power prices were generally bearish yesterday although downward movement was limited by tighter supply. Stronger EUA allowances also provided some support to the far-curve, although this was offset by a slight drop in coal.
|Gas prices have decreased this morning despite an undersupplied system, as Norwegian maintenance continues to impact flows into the UK. However, movement further along the curve is more stable, with support provided by a rise in oil and carbon.
|Demand levels are above the seasonal norm as warm weather has lifted cooling demand, while weak renewables have led to a rise in gas-fired power generation. This has helped to limit losses at the front of the curve and contracts further out have found resistance from higher oil and carbon.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-neary prices are back above $65/b due to on-going tension in the Middle East and new sanctions imposed by the US government on Iran, as a result, the short term outlook is very bullish.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while electricity recorded a loss – closing at 50.20ppt and £52.93/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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