2nd November 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
An expected drop in temperatures over the next fortnight helped to push prompt gas contracts higher yesterday, with further support coming from a delayed restart in withdrawals from the Rough storage facility. LNG supply was tight with only two deliveries scheduled to dock in the UK this month, while Norwegian imports remained low. Contracts further along the curve also found support from a sharp rise in APi2 coal. A sharp rise in APi2 coal helped contracts further along the power curve move higher on Tuesday, with rising gas contracts dictating the front of the curve. Outages at French nuclear power plants and low renewable generation continue to cause supply fears, while below average temperatures will increase residential demand.
Market Open Market Open
Gas prices could move down slightly this afternoon due to an oversupplied gas system and strong losses on the oil market, however, gains can be observed across the curve at the start of today's session. Residential demand has risen by 11% due to colder weather, LNG supply remains weak and low wind levels will increase reliance on CCGT generation; restricting any potential losses. The power market remains bullish this morning with demand levels expected to rise over the coming weeks, while supply concerns over the winter period continue to drive contracts higher. Strengthening gas and coal markets are also factors behind the morning's price increases, while weak wind generation has helped the prompt open at a premium.

Brent Summary

Brent 1st-nearby prices recorded a loss overnight and now trade below $47.7/b due to pessimism surrounding the potential freeze deal following failed negotiations in Vienna between major oil producers.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas moved higher, while commercial electricity posted a loss - closing at 47.30ppt and £48.89/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

energy price graph - 02-11-2016

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.