|Gas contracts moved down on Thursday as oil prices continued to plummet and Norwegian imports into the UK increased. Flows via the Langeled pipeline rose by 35mcm as outages at Norwegian facilities were resolved, leading to an oversupplied UK gas system. This improved supply picture resulted in strong losses on the near-curve, although a weaker Pound limited some of the downward movement.
|Weaker consumption and a drop in gas and oil markets exerted bearish pressure across the power curve on Thursday, although coal displayed an increase which limited some losses further out. Meanwhile, wind generation remained healthy which was another factor for the Day-Ahead contract's drop in price.
|The UK gas system remains long this morning as Norwegian flows continue to rise and gas demand is 6mcm lower than yesterday. A rise in deliveries to the St Fergus terminal has also led to higher UKCS production and prompt gas prices have opened at a discount, with another drop in oil weighing on the far-curve.
|Weaker gas is the main driver of the power market with the majority of prices opening lower than yesterday's close. A healthy renewable generation outlook has helped to pressure down the prompt, while falling oil has been slightly offset by another increase in APi2 coal prices.
Brent 1st-nearby prices continue to fall with a lack of bullish drivers able to prevent the downward trend, prices likely to hit $40/b at some stage and currently trade at around $42.4/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased- closing at 41.70ppt and £43.06/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
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