|Market Close||Market Close|
|Gas contracts moved higher on Friday with support coming from a rise in oil prices, although upward movement on the prompt was slightly restricted by a weaker demand outlook for this week. Supply levels were also comfortable with numerous LNG deliveries expected to arrive in the UK which helped to curb gains on the rest of the near-curve.||Power contracts were bullish during Friday's session and were dictated by a revision to the weather forecast for early March, with below average temperatures set to return. Milder weather over the weekend helped the prompt to decrease but the rest of the curve followed rising gas and oil contracts.|
|Market Open||Market Open|
|Demand levels are 12mcm lower than Friday with another drop expected tomorrow but despite this, the UK gas system has opened short this morning due to weaker Langeled flows and a decrease in LNG send-outs; resulting in gains across the near-curve. A temporary upturn in temperatures is expected this week but a return to below average weather is forecast for early March although this isn't expected to result in a huge surge in demand.||A weaker demand forecast and comfortable generation for tomorrow has helped the prompt to open at a further discount this morning, although a colder weather outlook for later in the week has supported some near-curve contracts. Overall movement is generally mixed with higher gas prices a factor, while Brent is almost unchanged from Friday's close.|
Brent 1st-nearby prices are rather stable at present and remain close to Friday's closing price of above $35/b. The recent IEA report showed a strong decline in US oil output, while negotiations between OPEC and Qatar are ongoing.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a small loss - closing at 31.00ppt and £34.97/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