|The weather forecast for next week is set to be milder than initially expected which helped towards losses on near gas curve on Tuesday. An LNG delivery from Peru is also set to arrive in the UK before the end of the month which further weighed on prices. Meanwhile, movement further along the curve was less visible as stronger coal prices limited any decreases.
|UK consumption levels are set to decrease next week as the cold stint is expected to be short-lived. Power prices were generally dictated by falling gas and oil, although a rebound in APi2 coal offered some resistance.
|Temperatures for the next few days were revised higher overnight, resulting in more downward movement at the front of the gas curve this morning. The UK gas system also remains long and Brent prices display further losses, contributing to a bearish outlook.
|Power contracts have shed from their price this morning, tracking losses on the gas curve which has weakened on the back of an improved supply/ demand picture. More significant decreases can be seen at the front of the curve as temperatures over the next week or so are expected to be milder than previously forecast.
Brent 1st-nearby prices continue to move down this morning and have dropped below $55/b following reports of a significant increase in crude inventories. Today’s EIA report is also expected to show a stronger output forecast for next year, resulting in doubts about the impact of OPEC production cuts.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 47.72ppt and £46.16/MWh, respectively.
Today’s prices can also be found in an easy to read table on or ‘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.