|Market Close||Market Close|
|LNG send-outs, BBL flows and Norwegian imports all ramped up yesterday, sending the UK gas system into oversupply which resulted in losses across the near gas curve. Warmer temperatures are also expected to return next week which will reduce demand levels, further weighing on prompt contracts. However, rising Brent limited some of the bearish movement further along the curve.||The gas curve displays further downward movement this morning with direction coming from a healthy supply/ demand outlook. Langeled flows and LNG send-outs are expected to increase further on Monday, while milder temperatures will weigh on demand. The overall picture is little changed from yesterday, with Brent continuing to rise and provide some support further out.|
|Market Open||Market Open|
|Power contracts followed the movement of their weakening gas counterparts yesterday, with further downward pressure coming from a milder weather outlook for May. An expected rise in wind generation over the next few days also helped the Day-Ahead contract close at a strong discount.||Prompt contracts display another loss this morning on the back of a milder weather forecast for next week, with an expected increase in wind levels also assisting the bears. The rest of the curve has followed falling gas, although strengthening coal and oil contracts have limited the downward movement on the far-curve.|
Brent 1st-nearby prices continue to display sizeable gains and are close to hitting their highest levels of 2016 so far. A weak US Dollar and a drop in US oil production continues to be the main market driver.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 34.40ppt and £37.40/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