|Market Close||Market Close|
|A drop in the Pound resulted in strong upward movement on the UK gas curve on Friday, although Euro-traded contracts posted losses. Elsewhere, the Dutch Economic Affairs Minister made a preliminary decision to cap production at the Groningen gas facility over the next five years; reducing output from 27bcm to 24bcm.||Movement on the power curve was bullish on Friday with gains observed across the curve with a drop in the Pound providing support. However, a drop in oil and coal prices helped to limit some of the upward movement further along the curve.|
|Market Open||Market Open|
|Gas contracts continue to be dictated by currency movements this morning as the Pound Sterling has weakened further against other major currencies; supporting contracts across the curve. Overall fundamentals are generally unchanged from Friday and the 'Brexit' vote continues to act as the main market driver.||Power contracts on the near-curve moved higher again this morning as the Pound continued to lose value over the weekend. Meanwhile, temperatures in the UK are expected to remain below the seasonal average over the next few days which should limit the need for additional cooling measures, thus lowering demand.|
Brent 1st-nearby prices moved down overnight but have rebounded back to Friday's levels this morning, trading just above $48.8/b. The market is still feeling the effects from the UK's vote to leave the EU, creating uncertainty amongst traders.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas moved higher, while commercial electricity decreased - closing at 41.94ppt and £42.23/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