|A colder weather outlook exerted bullish pressure across the near gas curve yesterday as demand levels are expected to rise. LNG supply also remained low, providing additional support at the front of the curve. Further out, a sharp drop in oil prices limited gains at the back of the curve.
|Power prices mirrored the gas market yesterday and increased due to the expected rise in heating demand, caused by below average temperatures. Healthy wind levels capped any gains on the prompt, while a decrease in oil prices erased some gains at the back of the curve.
|Gas prices have decreased this morning as the system has opened slightly long, however, an outage at Bacton has reduced supply by 6mcm and prices are expected to increase as the session progresses. A weaker oil market continues to restrict upward movement further out, with coal prices also displaying a loss.
|It was announced this morning that three nuclear reactors at Tricastin in France have been given approval to restart, having been offline since September. The news from France helped power contracts shed from their price, despite a higher demand outlook, while weaker fuel markets weighed on the far-curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices recorded their highest losses for a couple of months during yesterday’s session, with fears that US shale production could rise significantly, negating the effects of the OPEC extension.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 48.34ppt and £47.05/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.