|Market Close||Market Close|
|Production cuts at the Groningen gas facility are expected to come into effect sooner than expected, providing support to European markets yesterday. On-going outages also limited flows to the UK resulting in an undersupplied system, offering further support to prompt prices. Meanwhile, rising oil and coal markets helped far-curve prices climb higher.||Power contracts rallied higher in the afternoon with support provided by rising coal and gas markets. Slightly lower temperatures is expected to reduce cooling demand next week but this failed to provide much resistance at the front of the curve. Meanwhile, oil markets continue to recover, adding to the bullish sentiment at the back of the curve.|
|Market Open||Market Open|
|The UK gas system is 4.8mcm short this morning following a small rise in demand and on-going supply constraints. Weak renewables continue to lift CCGT demand, while exports via the IUK interconnector stand at 11.9mcm. Prices across the near-curve have moved higher on the back of the short system, while stronger fuel markets have contributed to gains on the far-curve.||Wind levels have decreased this morning, helping the prompt add to its price, while the rest of the near-curve has found direction from rising gas. Further out, prices continue to find support from bullish fuel markets, with coal, oil and carbon prices all displaying gains.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent posted gains of around $1.5/b over the course of yesterday’s session with Venezuelan supply concerns continuing to prop up the market; Brent currently trades just below $76.9/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 55.45ppt and £54.86/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.