|Improved temperatures and healthy supply levels helped to weigh on prices across the near gas curve yesterday. Norwegian supply was comfortable and LNG send-outs remained strong with 4 deliveries scheduled to arrive this month. Further out, contracts moved higher later in the session as the coal market continued to strengthen due to potential supply disruptions in Australia.
|Power prices displayed a similar trend to their gas counterparts yesterday, with losses at the front of the curve and stable-to-bullish movement displayed further out. An expected drop in wind levels today helped the prompt move higher but the rest of the near-curve was pressured down by a milder weather outlook. Meanwhile, a rebound in Brent and strong coal prices offered support to the far-curve.
|Day-Ahead gas has increased this morning as temperatures have been revised down for the rest of the week, resulting in higher residential demand. The system is still balanced thanks to healthy LNG send-outs and steady imports but near-curve prices have also found direction from colder weather forecasts. Gains on the far-curve have been restricted by a drop in oil prices but rising coal remains the main market driver.
|Power contracts have followed the gas market and have been pushed higher by a colder weather outlook for the coming days, following a revision overnight. Wind generation is also not forecast to improve tomorrow, helping the prompt add to its price, while a bullish coal market continues to dictate the back of the curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices rebounded slightly yesterday but have fallen once again this morning to trade back around $68/b. Yesterday’s support was provided by a rise in US equities and comments made by the Russian Energy Minister in regards to OPEC/ non-OPEC production cuts.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased slightly – closing at 46.95ppt and £47.93/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.