|Market Close||Market Close|
|A rise in Norwegian output and a stronger outlook for Russian gas transit through the Nordstream pipeline weighed on European markets yesterday. Centrica also announced that 870mcm of gas will be produced at the Rough storage site between Q4-17 & Q1-18, further contributing to the losses. Meanwhile, coal and oil contracts shed from their price and helped towards bearish sentiment on the far-curve.||Losses on the gas market transferred to power yesterday, with weaker APi2 coal also a contributing factor. An expected rise in wind generation today helped to pressure down the prompt, with gas-fired power demand set to fall further towards the end of the week.|
|Market Open||Market Open|
|The UK gas system is oversupplied this morning and CCGT generation is set to fall in the short-term, resulting in a decrease on the prompt. The far-curve also displayed downward movement due to weaker coal and oil, however, this afternoon’s EIA report could provide some volatility. Elsewhere, the expected increase in Russian gas continues to fuel bearish movement on European markets.||Sentiment on the power curve remains bearish this morning on the back of improved wind levels and a weaker demand forecast for CCGT generation. Coal prices continue to move down, while improved supply has resulted in falling gas contracts.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent corrected downwards yesterday as traders indulged in profit taking following strong bullish movement over the past week. Market movement was sparked by fresh estimates from Bloomberg which showed a rise in OPEC output. Today’s EIA report will result in further movement this afternoon but it is unclear which direction prices will take.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 41.70ppt and £42.86/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.