|The UK gas system was oversupplied on Friday with demand levels 10% below the seasonal norm which helped near-curve gas contracts to decrease in price. Temperatures were expected to remain above average for the rest of November which also provided bearish pressure. Meanwhile, the outage at the Kvitebjorn gas field in Norway was resolved which led to an increase in flows via the Langeled pipeline.
|A strong wind generation forecast helped Day-Ahead power record a loss on Friday with a mild weather forecast for this week weighing on the rest of the near-curve. Movement was generally mixed further along the curve with stronger coal offering some support.
|The gas system has opened short this morning due to a drop in BBL imports and lower UKSC output which has offered support to the prompt and other near-curve contracts. Storage injections could increase to make up the difference, although Norwegian supply remains stable. Temperatures are also set to remain mild over the coming days which should reduce demand levels, providing some downward pressure.
|Mild temperatures and ample supply levels have restricted some of the gains on the power curve this morning but stronger gas prices are currently the main market driver. Wind generation has dropped today following extremely strong levels at the weekend but it is expected to rise to around 5GW tomorrow, helping the prompt to open unchanged.
Brent 1st-nearby prices have decreased once again this morning, dropping below $45/b as a lack of bullish fundamentals allowed weak global demand to dictate the market.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas displayed a small loss, while commercial electricity increased slightly - closing at 37.28ppt and £39.30/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