|Market Close||Market Close|
|Following a bullish open, the majority of gas contracts declined over the course of Wednesday’s session, with downward pressure provided by a weaker demand forecast. However, the back of the curve was supported by a strengthening oil market as stock levels in the US continue to increase.||Power prices eased down yesterday afternoon as renewable levels were forecast to rise over the coming days and temperatures are expected to be around the seasonal average. The front of the curve tracked movement on the gas market but prices further out were pushed higher by stronger coal and oil contracts.|
|Market Open||Market Open|
|The system has opened 7.6mcm short as demand levels ramped up by 13mcm compared to yesterday, although they remain below the seasonal norm. Flows are largely unchanged, with Langeled supply still below 50mcm. LNG send-outs remain low but two deliveries are expected to dock in the UK next week. Meanwhile, the back of the curve is bullish due to rising oil and a weaker Pound.||Renewable levels are set to improve tomorrow, with similar temperatures expected; this has helped the prompt shed from its price this morning. Front-month has also decreased, with direction coming from its gas counterpart. The back of the curve continues to climb higher with rising Brent and coal the main market drivers.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have rallied higher following the release of the latest US stocks report which displays another increase, with the threat of sanctions on Iran also a supportive factor; Brent currently trades around $77.2/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 53.47ppt and £52.87/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.