|Near-curve gas prices decreased on Friday as the cold stint at the start of this week is expected to be short-lived and the forecast for the rest of January is mild, resulting in a weaker demand outlook. Supply levels were also healthy with no constraints on Norwegian flows. Oil and coal markets had little impact on the far-curve, with most contracts recording a small loss thanks to a stronger Pound.
|The expected drop in temperatures over the weekend and the start of this week helped to lift the prompt on Friday, however, an expected rise in wind generation helped to restrict the upward movement. Meanwhile, the Pound strengthened against the Euro, providing some bearish pressure on the far-curve, with minimal movement displayed by coal and oil markets.
|A downward revision in temperatures for next week has contributed to gains across the near-curve this morning despite a long gas system. Flows via the BBL and IUK pipelines are stable, while a rise in wind levels has reduced CCGT demand. Further out, prices have been pushed higher by rising Brent, with coal prices also showing an increase.
|Strong wind levels and an expected uptick in temperatures has helped the prompt shed from its price this morning, although a colder weather outlook for later in the week has helped the rest of the near-curve climb higher. On the far-curve, prices have increased on the back of an increased in Brent and coal.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display a small increase from Friday’s open and trade above $67.7/b with direction coming from a decrease in oil drilling in the US, as per the latest Bakker Hughes rig count.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity recorded increased – closing at 49.19ppt and £47.71/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.