|Gas systems across Europe were balanced yesterday thanks to a rise in imports from Norway, resulting in downward movement across the gas-curve. A drop in oil prices also helped to weigh on far-curve contracts, assisted by a weakening Pound.
|An improved wind generation forecast helped to pressure down the Day-Ahead contract yesterday, with weaker consumption also weighing on the rest of the near-curve. Further out, a drop in coal prices resulted in some bearish movement, with a drop in gas prices another factor.
|Norwegian flows are slightly down this morning, with imports via the Langeled pipeline into the UK weakening in particular. This drop in supply has helped to support some contracts with a small rise in oil prices also supporting the bulls. Elsewhere, demand levels are low and temperatures are expected to remain below the seasonal norm for the rest of the week.
|Movement on the power curve is generally mixed this morning with direction coming from changes on the gas market. A jump in Brent prices has lifted some far-curve contracts, while below average demand levels have weighed on the prompt, also helped by healthy wind generation for today and tomorrow.
Brent 1st-nearby prices have rallied higher this morning, taking direction from potential workers strikes at oil pipelines in Norway and a bullish EIA report forecast; Brent currently trades at around $49.1/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 41.13ppt and £42.49/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