|Gas prices moved down on Friday as temperatures are expected to increase during the first week of February, resulting in lower demand levels. A rise in wind power will further weigh on demand as the UK will be less reliant on CCGT generation, losses on the oil and coal market were also factors behind the bearish movement.
|Milder weather for this week helped Day-Ahead power shed from its price on Friday with the losses filtering through to the rest of the near curve. Weaker fuel contracts provided additional downward pressure, while strong wind generation was also forecast for the weekend and the start of this week.
|The weaker demand outlook continues to pressure down gas contracts this morning, however, a technical rebound this week cannot be ruled out. Cold weather is expected to return to the UK in the second week of February which limited some of the losses, with supply disruptions at Bacton Seal also offering support.
|Prompt power contracts have rallied higher this morning due to the downward revision in temperatures for next week. Coal prices have also increased, helping contracts on the far-curve add to their price.
Brent 1st-nearby prices have moved down this morning on the back of a higher rig count, with 566 currently drilling in the US, an increase of 92 since the start of December; Brent trades at around $55.3/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a loss - closing at 47.35ppt and £46.49/MWh, respectively.
Today's prices can also be found in an easy to read table on or 'current UK energy price' page.
Click graph to enlarge
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