|Market Close||Market Close|
|Gas prices strengthened across the board yesterday with support provided by rising oil prices, higher storage injections, unplanned outages and an expected rise in demand. Below average temperatures are forecast for next week which will lead to an increase in residential demand, while US sanctions on Iran has resulted in a bullish oil market.||Power contracts mirrored their gas counterparts yesterday and climbed higher. An expected rise in wind levels today helped to restrict any upward movement on the prompt but a cooler weather forecast for next week and reduced gas supply helped the rest of the near curve close at a premium. Meanwhile, a strong oil market and rising coal contracts supported prices at the back of the curve.|
|Market Open||Market Open|
|The UK gas system is 19.8mcm long this morning as demand levels have dropped to 165mcm, well below the seasonal average. Gas flows also display a small increase, contributing to the oversupply. However, contracts remain bullish as the Pound continues to weaken against the Euro and fuel markets are on the rise.||Power contracts continue to move higher this morning with weak renewables and a cooler weather outlook offering support to the near-curve. Sentiment at the back of the curve is also unchanged with upward pressure provided by stronger coal and oil markets, as well as a weak Pound.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices almost hit $78/b yesterday and remain at their highest levels since November 2014. New sanctions on Iran, supply disruptions in the Middle East and rising US stock levels have all contributed to the bullish sentiment.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 54.45ppt and £53.97/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.