|Market Close||Market Close|
|Unplanned outages at Norwegian facilities resulted in bullish movement on the near gas curve yesterday afternoon; maintenance at the Skarv field has reduced export capacity in Norway by 10mcm. Further out, contracts found support from a jump in oil prices as it was announced that major oil producers have agreed to production cuts.||Gains could be observed across the power curve yesterday as contracts tracked the movement of their strengthening gas counterparts and a jump in Brent. API2 coal also displayed a significant increase which provided additional support further out. Meanwhile, scheduled tests on a French nuclear power plant has provided some energy security concerns which helped to lift the Winter-16 contract.|
|Market Open||Market Open|
|Bullish sentiment continues on the gas curve this morning with a jump in Brent the main market driver. Norwegian flows remain low on the back of two unplanned outages, although gas demand has fallen to its lowest level so far this week. However, temperatures are expected to decrease over the coming days and wind power is set to drop which should mean the weak demand picture is short-lived.||Upward movement on the power curve continues this morning with stronger coal, gas and oil contracts providing significant support. Meanwhile, temperatures are expected to turn colder over the next few days which could lead to a rise in consumption.|
Brent 1st-nearby prices recorded a strong gain yesterday as OPEC members reached a deal to limit production over the next few months; Brent added around $3/b to its price, the largest gain recorded in 5 months. Output will be cut by 32.5mcm-33mcm despite pessimism in regards to an agreement being reached with the decision coming as a surprise to traders.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased significantly - closing at 41.68ppt and £46.80/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
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