|Near-curve gas prices increased during Tuesday’s session with support provided by a rise in power contracts, as colder and less windy weather was forecast for today. Further out, prices were influenced by stronger coal, carbon and oil markets.
|Power prices were on the rise yesterday with a rise in coal, gas, carbon and biomass feedstocks all having an impact. Brent also displayed additional gains, supporting the far-curve, while the prompt recorded a gain ahead of a weak wind outlook for today.
|Gas demand is higher this morning due to weaker renewables and colder temperatures, however, the system is 26mcm long due to healthy Norwegian flows and stable LNG send-outs. On the far-curve, contracts continue to take strength from a bullish oil market.
|Further gains can be observed on the power curve this morning as gas, oil and carbon markets continue to increase. However, overall fundamentals are slightly bearish and a downward correction cannot be ruled out. The gas system is oversupplied and the short term weather forecast indicates temperatures above the seasonal norm.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have moved higher once again due to optimism surrounding trade talks between the US and China. Brent currently trades around $58.7/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 58.38ppt and £59.95/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.