| Gas | Power |
| Market Close | Market Close |
| Gas prices decreased on Thursday as overall fundamentals were healthy and the Pound continued to strengthen against the Euro. Maintenance in Norway had a lesser effect on UK supply than initially expected and the gas system was only slightly short. Meanwhile, a mild weather forecast for next week provided additional bearish pressure on the near-curve. | Norwegian flows are still slightly reduced this morning but this has had little effect on prices as the system is oversupplied as demand levels are 11mcm lower. Above average temperatures are expected in the UK next week which will further weigh on demand levels and losses can be observed on the near-curve as a result. Further along the curve a strong Pound has helped to pressure down contracts. |
| Market Open | Market Open |
| Far-curve power contracts increased yesterday and followed rising coal and oil, although a stronger Pound limited the gains somewhat. The prompt also moved higher on the back of a weak wind generation forecast for next week, while the rest of the near-curve decreased slightly with direction coming from weaker gas and lower demand. | Day-Ahead power has climbed higher this morning as wind generation levels are expected to fall to as low as 0.5GW on Sunday. The rest of the near-curve has traded lower with influence coming from a warmer weather outlook and falling gas, while stable Brent and a strong Pound weighed on the far-curve. |
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Brent Summary Brent 1st-nearby prices are relatively stable at present following some significant downward movement; currently trading at around $48.5/b. The market currently lacks direction as there is little change to fundamentals, with nothing to push prices above that $50/b benchmark. 1-year forward prices Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 38.93ppt and £40.68/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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