|Gas prices displayed losses on Monday as supply levels were comfortable due to improved Norwegian flows and high LNG send-outs, with a number of deliveries scheduled to dock in the UK and France this week. Coal prices also decreased following strong losses last week, providing additional bearish pressure on the far-curve.
|The majority of power contracts tracked the movement of weakening gas and coal markets yesterday, while oil stabilised. However, wind and solar generation was forecast to remain low today which supported the prompt.
|The outlook for gas prices remains weak this morning as the system is oversupplied following a further increase in Norwegian exports. Elsewhere, maintenance work in Ukraine will limit Russian flows into Europe, restricting some of the losses. Further out, coal and oil markets display minimal movement and contracts display minor losses.
|Wind generation is set to rise over the weekend and next week but should remain low over the next few days; CCGT demand will remain high as a result. Weaker gas has helped to pressure down the near-curve, while falling coal prices have weighed on the far-curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent prices have stabilised, displaying a drop of just $0.01/b since yesterday’s open. The market remains very bearish but traders found some support from stronger gasoline demand in the US, with some optimism that Libya and Nigeria will cap their output following the OPEC meeting on the 24th of July.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 41.47ppt and £42.85/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.