5th October 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices increased yesterday with support provided by a rise in Brent crude, with the larger gains displayed at the back of the curve. Supply levels were practically unchanged from the previous session and the system was close to balance. Power contracts shed from their price on Thursday, pressured down by corresponding fuel markets. Milder weather and improved renewables are also forecast for next week which provided additional bearish pressure.
Market Open Market Open
The system remains balanced this morning with a milder weather forecast for next week helping to weigh on near-curve prices at the start of the session; a rise in Norwegian and Russian flows have also contributed to the bearish sentiment. Further out, prices have followed weaker coal and carbon prices, although the oil market continues to provide resistance. Weaker gas, carbon and coal prices continue to apply downward pressure to the power curve this morning. Despite an improved outlook for the next week, wind levels are expected to drop over the weekend and combined with colder weather this has helped toward some gains at the front of the curve.

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

Brent Summary

Brent 1st-nearby price moved down yesterday evening following strong gains on Wednesday, however, the overall outlook is unchanged. On-going support has been provided by the expected drop in Iranian exports and an unwillingness by OPEC to make up the shortfall.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher – closing at 69.35ppt and £66.20/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 - 05-10-2018

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.