|Gas prices displayed further losses yesterday with direction coming from a warmer weather outlook and bearish movement on coal and oil markets. Demand levels are expected to fall below 200mcm over the weekend but some upward pressure was provided by unplanned outages which reduced flows into the UK.
|Power contracts followed their gas counterparts and moved down yesterday, although a slight drop in renewable power was expected today, capping any downward movement on the prompt. An expected rise in temperatures over the Bank Holiday Weekend helped near-curve contracts shed from their price, while the far-curve was dictated by weaker fuel markets.
|The system opened almost 10mcm short this morning but has since moved to just 4mcm short following a slight improvement in supply. Temperatures are milder today and above average weather is expected tomorrow and over the weekend, helping prices across the near-curve to decrease. Movement at the back of the curve is also bearish as fuel markets have failed to provide support.
|Temperatures are expected to be 6°C above seasonal norm in some parts of the UK this weekend which will reduce consumption levels and see a rise in solar generation. As a result, losses can be seen across the near-curve this morning with the exception of the prompt, which shows a small gain due to weaker wind levels.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Despite a bearish US stocks report, Brent held firm yesterday and remains stable this morning, trading below $73.4/b. Storage and production levels both increased but the lack of downward movement is evidence of how strong the current bullish sentiment is on the oil market.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 50.98ppt and £50.96/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.