|Day-Ahead gas climbed higher yesterday as an expected drop in wind levels today will result in an increase in gas-fired power generation. The gains filtered through to the rest of the near-curve as the system moved closer to balance due to weaker Norwegian flows and low LNG send-outs. Meanwhile, Far-curve prices moved down as oil prices displayed strong losses and coal was stable.
|Comfortable renewable generation weighed on near-curve power contracts yesterday, although an expected drop in wind today helped the prompt move higher. Further downward pressure was provided by a slightly warmer weather forecast, while a drop in Brent capped gains on the far-curve.
|A rise in CCGT generation continues to support prompt gas prices this morning as the system has opened short. However, warmer temperatures are expected over the weekend, restricting some of the gains. Falling oil has applied bearish pressure to far-curve contracts, although a rebound cannot be ruled out.
|Power prices display minimal movement this morning, with some small gains recorded at the front of the curve. Wind generation is down this morning but is still relatively strong and these levels should continue into the middle of next week. Solar power is also expected to rise next week and weaker fuel has helped to curb some of the upward movement on the curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices dropped significantly yesterday following the release of the EIA report which showed a strong rise in US oil inventories. On-going issues in the Middle East failed to limit the losses and Brent trades below $48.4/b this morning.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity recorded a small gain – closing at 42.75ppt and £43.00/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.