|Gas prices surged higher yesterday afternoon following an announcement regarding the shutdown of the Forties pipeline which has halted North Sea oil and gas supply. Prices started and ended the session at a premium as cold weather lifted LDZ demand and Norwegian flows decreased due to unplanned outages.
|Gas prices have posted further gains this morning with the temporary closure of the Forties pipeline the main market driver, in addition to high demand levels. Meanwhile, Norwegian supply continues to be restricted by outages, resulting in increased imports from mainland Europe. Contracts at the back of the curve continue to find support from stronger coal and oil markets.
|Strong bullish movement on gas and oil markets helped to lift power contracts towards the end of yesterday’s session. Temperatures were also expected to drop further today, resulting in a strong increase for the prompt, with the rest of the near-curve also posting gains.
|Upward movement on the gas curve continues to transfer to the power market, with the help of rising coal and oil. The UK continues to experience cold temperatures which has lifted heating demand significantly, while wind generation is much lower than last week’s levels.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent has climbed to around $65.3/b this morning following emergency repair work at the Forties pipeline, the largest oil pipeline in the UK, read more here.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 49.41ppt and £47.49/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.