|Market Close||Market Close|
|Near-curve gas prices moved down on Friday as European temperatures were expected to be above average over the weekend, weighing on demand levels. Supply levels were also healthy in the UK, providing further downward pressure. Further out, contracts were supported by rising coal and oil markets, although a stronger Pound capped some of the gains.||Cold weather has hit the UK overnight and the coldest day of the year is forecast for tomorrow; the prompt has added to its price as a result. LDZ demand is 35mcm higher than Friday and is expected to rise to 300mcm tomorrow. However, an LNG delivery is expected to dock in the UK on Wednesday and weather forecasts for next week are milder, limiting some gains on the near-curve. On the far curve, the bullish movement is less prominent as fuel markets have stabilised somewhat.|
|Market Open||Market Open|
|Forecasts pointed to a windy and relatively mild weekend which helped the prompt shed from its price on Friday, with the losses filtering through to the rest of the near-curve. The Pound gained in value against the Euro but an increase in coal and oil prices offered support to contracts on the far-curve.||Day-Ahead power has recorded a gain of over £6/MWh this morning as tomorrow is set to be the coldest day of the year and heating demand will rise considerably. Meanwhile, front-Month has posted a small loss as milder weather is expected. A stronger Pound has limited the effects of higher coal and Brent has moved down this morning; as a result, upward movement at the back of the curve is not as significant.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices climbed higher on Friday but have softened slightly this morning, currently trading above $63.5/b. Latest figures in the US showed another rise in shale production which could undermine OPEC output cuts, resulting in a bearish sentiment this morning.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 47.30ppt and £46.32/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.