|Gas prices eased down during yesterday’s session as the UK gas system was oversupplied and oil contracts decreased in value. Improved wind levels reduced CCGT demand, while warm temperatures kept LDZ demand low. Russian flows into Europe also increased, helping to weigh on markets across the continent.
|Power prices displayed losses on Tuesday with direction coming from weaker gas and oil. Improved wind levels helped the prompt shed from its price, while temperatures have been closer to the seasonal norm, reducing cooling demand. However, some support was provided at the back of the curve by rising carbon.
|The system is still above balance this morning, although less oversupplied than yesterday, resulting in further losses across the near-curve. Demand levels have increased slightly, tightening the system somewhat, while bearish oil continues to pressure down the far-curve.
|Power prices display mixed movement this morning as weaker renewables are expected tomorrow, while coal & carbon markets have moved in the opposite direction to oil & gas. The prompt increased by over $1/b, while the new front-month contract traded lower.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent fell by around $0.7/b yesterday as bullish sentiment created by Saudi supply disruptions has eased and downward pressure was provided by rising Russian and OPEC production.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher – closing at 57.49ppt and £57.48/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
If you would like to learn more about how Apollo Energy can help your business find the best deal on its gas and energy contracts then feel free to get in touch by calling us on 01257 239500 or using the form on our contact form.