|Coal and oil recorded strong losses yesterday which heavily weighed on the gas curve. A potential oil glut led to a significant decrease in the price of Brent crude, while further bearish pressure was provided by weaker carbon and power contracts. A short system had little bearing on the curve as the overall supply picture is healthy.
|Power prices moved down yesterday, following weakening gas and carbon markets, while coal and oil prices also fell significantly. A milder and windier weather outlook helped to weigh on the near-curve as both residential and CCGT demand should subside.
|The system has opened long this morning, resulting in further losses on the near curve, while the far-curve has stabilised following strong losses on Thursday. A slight rebound cannot be ruled out today as traders look to cash in on their short positions.
|Most power prices are marginally higher this morning as coal and carbon markets display a slight rebound. Temperatures are slightly colder but remain above the seasonal norm, while wind generation should hold its current levels over the weekend.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent displays strong losses this morning, dropping by 16% from its highest level in October. Brent currently trades below $73/b as recent data suggests strong output from the US and Russia, with the possibility of some leeway being granted to big importers of Iranian oil also weighing on prices.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 60.60ppt and £58.35/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.