|Gas prices moved down on Friday as supply levels in the UK were healthy and the Pound strengthened against the Euro once again. An outage at a Norwegian processing facility was resolved, which led to a 30mcm increase in flows; resulting in a long gas system. Temperatures are also expected to remain relatively mild this week which further weighed on contracts.
|The UK gas system remains long this morning with LNG send-outs rising by 10mcm, compared to Friday's levels. Norwegian output is also strong, although Russian flows into Europe are slightly reduced. Further bearish pressure came from a revised weather forecast, with temperatures expected to be 4-5 °C above the seasonal norm later in the week; losses can be seen across the curve as a result.
|Most power contracts moved down on Friday with a warmer weather outlook and falling gas the main market drivers. Day-Ahead fell by £0.15/MWh and Front-Month decreased by £0.10/MWh, while quarterly contracts were the exception and climbed higher on the back of stronger coal and carbon emission prices.
|Further losses are evident on the power curve this morning as gas prices have weakened and this week's temperatures have been revised even higher. Brent also remains low and has posted another small loss this morning to provide additional bearish pressure on far-curve contracts.
Brent 1st-nearby prices remain just above $48/b this morning with very little change over the last four sessions, however, the overall outlook is bearish as little trading is expected to take place at the start of this week.
1-year forward prices
Market close data has revealed that the 1-year forward price both commercial gas decreased, while commercial electricity displayed a gain - closing at 39.28ppt and £40.70/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