|Strengthening fuel markets supported gas prices yesterday with additional bullish pressure provided by restrictions on Norwegian and UKCS supply due to planned maintenance. The LNG outlook for September is also weak and European stocks are below average.
|Movement along the power curve was bullish on Tuesday with stronger gas and oil markets the main market driver. Gains at the front of the curve were limited by a significantly improved renewable generation outlook for today but a weaker Pound provided additional upward pressure on the far-curve.
|The UK system has opened 15mcm long this morning as Langeled flows have increased to 52mcm but instead prices have taken direction from a stronger demand forecast. Colder temperatures are expected over the next week, lifting LDZ demand, while further support was offered by higher carbon and emissions prices.
|Power contracts have added to their price with the exception of the Day-Ahead and Front-Months contracts. Healthy wind generation restricted upward movement on the prompt as the need for CCGT power has decreased. Further out, prices have been supported by stronger coal, oil, carbon and emissions costs.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have climbed higher this morning following the return of oil refineries in the US. However, Hurricane Irma is heading for the Caribbean and will limit refining capacity in the area; markets will remain volatile as a result.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 46.03ppt and £46.56/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.