|Gas prices continued to display mixed movement yesterday ahead of the start of the new gas year this coming Friday. The short term weather outlook in the UK is set to be rather mild over the next few days, while LNG supply remains healthy and the Pound strengthened; resulting in losses for some near-curve contracts. Meanwhile, a drop in wind levels could result in higher gas-fired power generation which restricted some downward movement.
|Movement on the power curve also varied on Tuesday with the prompt and front-month contracts both adding to their price, while contracts further along the curve were generally bearish. Wind generation fell yesterday and is expected to remain low today, helping the prompt climb higher with assistance from higher demand levels.
|Gas prices are generally stable this morning as fundamentals display little change from previous sessions, although the supply outlook remains unclear as we enter the new gas year at the end of the week. Milder weather is expected to return to the UK in the coming days which has limited gains on the near-curve, while Brent also displays little change and has failed to influence the far-curve.
|Wind generation is forecast to remain low next week which has helped to support some power contracts this morning, although prices further along the curve were generally unchanged due to stable Brent. Day-Ahead was one of the few contracts to decrease as warmer temperatures should lead to a drop in demand over the coming days.
Brent 1st-nearby prices displayed a small rebound overnight following some bearish movement yesterday afternoon but still remain below $40/b. An announcement that the Khafji oil field will resume production helped to pressure down prices yesterday, although a weaker Dollar provided some support.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased slightly - closing at 30.53ppt and £35.13/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