|Gas prices were bullish yesterday on the back of supply restrictions and a rise in Brent and coal. Output at the UK’s Cygnus gas field was restricted, while the outage at Heimdal was extended, resulting in a short UK gas system.
|Power contracts mimicked movement on the gas curve yesterday, with an uncertain renewables forecast offering little resistance. An outage at Hinkley Point also added to the bullish sentiment, with a rebound in oil & coal an additional factor.
|Gas prices continue to climb higher today despite an oversupplied system and an increase in Russian flows to the continent. The system is 11mcm long as the outage at Cygnus was resolved, offsetting a slight drop in LNG send-outs. Flows via Bacton and Langeled have also increased, although output at Heimdal is still limited. Meanwhile, bullish oil continues to push contracts higher further along the curve.
|Limited renewable generation and rising gas contracts have contributed to increases on the power curve this morning. The prompt has shed from its price as wind generation is expected to rise tomorrow but a sharp decrease is expected over the weekend; solar power is also set to remain low for the rest of the month. Further out, the main market drivers are stronger coal and oil markets.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have climbed higher this morning following the release of this week’s EIA inventory report which showed a strong decline in US crude stocks; Brent currently trades above $53/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 44.31ppt and £44.57/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.