|Market Close||Market Close|
|Gas contracts added to their price on Monday following a sharp rise in coal prices, in addition to a bullish oil market. Sanctions on Iran and a drop in Saudi oil production helped to lift oil prices, while coal was supported by Chinese demand. The short term supply/ demand outlook was little changed from last week and gas prices instead found direction from fuel markets.||Power prices rallied higher yesterday with rising gas prices and a $2/tn increase in coal prices creating bullish sentiment across the curve. However, a cooler weather forecast will reduce demand for air conditioning, offering some resistance to the bulls. Wind generation was also expected to decrease today, supporting the prompt, although levels should improve later in the week.|
|Market Open||Market Open|
|The UK gas system has opened long this morning, while temperatures are expected to drop to around the seasonal norm, as a result, movement at the front of the curve is minimal. Bearish resistance was also provided by a healthier wind forecast which will reduce gas-fired power demand in the coming days. Meanwhile, oil prices continue to climb higher, providing support at the back of the curve.||Wind generation is expected to pick up tomorrow, helping the prompt shed from its price, although the rest of the near-curve is generally bullish. Fuel markets continue to dictate the rest of the curve, with rising coal and oil markets contributing to gains.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have been pushed higher by fresh sanctions placed on Iran by the US government, although this is unlikely to affect oil imports until November; it is predicted that around 1 million bpd could be taken off the market.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 59.08ppt and £58.30/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.