|Gas prices increased yesterday despite milder temperatures and improved wind generation which reduced demand. Bullish sentiment was provided by a cold weather outlook for next week and an outage at the Troll processing facility which will impact Norwegian flows into the UK. Meanwhile, a rise in coal prices helped to lift the far-curve, ignoring a weakening oil market.
|A downward revision in temperatures for next week supported prompt power contracts yesterday, although a mild and windy weather outlook for today provided some resistance. A rebound in coal prices helped the far-curve move higher with falling Brent providing little direction.
|Near-curve gas prices display further gains this morning as below average temperatures are set to return next week, resulting in higher demand. However, the upward movement was slightly capped by a long system as the current supply/ demand picture is comfortable. Further out, prices continue to take direction from stronger coal, while Brent has stabilised for the time being.
|Temperatures are set to fall next week and could remain cold for the remainder of February, offering support to power contracts this morning. Current wind levels are healthy and should hold their current levels tomorrow, restricting bullish movement on the prompt. Further along the curve, prices have been pushed higher by a stronger coal market.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent made a slight recovery yesterday morning but have plummeted since and trade close to $62.8/b at the start of today’s session. The global economy remains a factor behind trader’s decision making but the main driver continues to be strong US shale production.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 46.38ppt and £46.08/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.