|Demand levels were above the seasonal norm at the end of last week but improved Norwegian supply helped to curb some of the upward movement as the system was long throughout the session. The far-curve also displayed some losses in the afternoon on the back of a drop in coal prices.
|Comfortable wind generation helped the Day-Ahead and Front-Month contracts move down on Friday, although the rest of the curve found support from increased heating demand. Falling Api2 coal contracts weighed on the far-curve but the losses were restricted by another drop in the Pound.
|Below average temperatures are expected to continue throughout November with another downward revision at the weekend. LDZ demand remains high as a result of the cold temperatures, helping to lift near-curve gas prices despite a long system. Meanwhile Brent displays another increase and has contributed to gains on the far-curve.
|Cold weather continues to lift heating demand in the UK, resulting in gains across the near power curve. However, an expected rise in wind generation tomorrow has helped the prompt shed from its price. Meanwhile, coal prices have moved down but this has failed to offset the bullish effects of rising Brent and a weak Pound.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent has increased over the weekend and trades at $62.49/b this morning, its highest price since July 2015. Political tension in Saudi Arabia has provided strong support, as a number of officials have been arrested on anticorruption charges.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 46.98ppt and £46.25/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
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