3rd January 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices climbed higher on Wednesday with gains seen at the front of the curve on the back of a colder weather outlook for January. Oil prices also increased which offered support to back of the curve, ignoring a drop in coal. Power prices found support from rising gas and carbon markets, with the larger gains seen at the front of the curve. Meanwhile, a decrease in coal prices helped to limit upward movement further along the curve.
Market Open Market Open
An oversupplied gas system has helped to pressure down near-curve gas prices this morning, with the prompt displaying a loss thanks to a milder weather outlook for tomorrow. Further LNG deliveries are also expected to dock in Europe, while a drop in coal, oil and carbon weighed on the back of the curve. Movement along the power curve is generally bearish this morning with an upward revision in temperatures helping towards losses at the front of the curve. Further out, prices decreased thanks to weaker coal, oil and carbon.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent 1st-nearby prices have moved higher as reports suggest that Saudi Arabia has begun reducing its output as intended, with Bloomberg showing that production has decreased by 500,000 barrels a day.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 58.23ppt and £60.15/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 - 03-01-2019

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