|Market Close||Market Close|
|The UK gas system was short throughout yesterday’s session with exports to Europe at full capacity, while an outage at the Entry Segal pipeline also limited supply. A significant drop in wind levels was also expected to increase gas-fired power generation today. This weak supply picture resulted in gains across the curve, with bullish oil also a factor.||An expected drop in renewable generation today supported prompt power prices on Monday as the UK will be more reliant on gas-fired generation. The rest of the curve followed the movement of gas, with support coming from rising coal and oil.|
|Market Open||Market Open|
|The arrival of three LNG cargoes in the UK has resulted in higher send-outs this morning, sending the system into oversupply. UKCS production and Norwegian flows have also improved as various issues have been resolved. This has helped to limit upward movement at the front of the curve, although higher demand has offset the effects of healthier supply. Meanwhile, coal and oil markets continue to strengthen, pushing far-curve contracts higher.||Power contracts display mixed movement this morning due to contrasting fundamentals. Wind and solar generation have decreased from yesterday’s levels, with wind expected to remain low for the rest of the week, although solar power will improve. Meanwhile, warmer temperatures are expected next week which should lead to average consumption levels for this time of year.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices continue to display a bullish trend, adding over $0.50/b since yesterday’s open. Recent rig counts and output figures in the US continue to provide upward pressure.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 42.32ppt and £43.24/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.