|Tuesday saw a generally volatile day of trading with most contracts displaying sharp fluctuations over the course of the session before a late rally. The supply outlook was stable with an outage in Norway impacting flows into the UK, while a weaker Pound offered support further along the curve.
|Power prices closely followed gas yesterday with a weak Pound a factor behind gains on the far-curve, while carbon prices also continued to strengthen. The prompt was one of the exceptions to the bullish trend as wind levels are expected to improve, reducing reliance on gas-fired power.
|Gas prices continue to move higher this morning as the system remains undersupplied as demand levels are above the seasonal norm and LNG/ Norwegian flows are down. A slight increase in oil prices also provided some support to longer-dated contracts.
|Power contracts display additional gains this morning and continue to track the movement of gas. Coal has weakened but carbon still provides support, with oil also recording a minor rebound. Meanwhile, improved renewable availability continues to weigh on the prompt.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices displayed a small rebound yesterday on the back of bullish API figures but market sentiment remains weak due to contrasting fundamentals. Tensions in Iran have been offset by a weak demand forecast, providing little direction.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher – closing at 47.68ppt and £54.33/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.