13th March 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices stabilised on Friday following strong losses in the previous session as fundamentals were largely unchanged. A further drop in the Pound offered some support to the market but weakening oil continued to pressure down prices on the far-curve. Power contracts recorded minor losses on Friday with little support coming from the gas and coal markets. Brent continued to shed from its price, while mild weather and an expected rise in wind levels remained bearish factors.
Market Open Market Open
The UK gas system has opened significantly oversupplied this morning as UKCS production and LNG send-outs have increased, while demand levels have dropped due to mild weather. Elsewhere, Norwegian flows are 10mcm down but this has done little to impact the system, while falling oil continues to weigh on contracts further along the curve. Power contracts display stronger losses than gas this morning on the back of warm weather forecasts and healthy renewable generation. Oil prices have also fallen to a 3-month low but stable coal prices have provided some resistance, with tight supply levels in China offering support.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent 1st-nearby prices have recorded further losses and currently trade around $51.45/b. Markets have been under pressure since the release of the EIA report last week, with the latest weekly rig count figures also providing bullish sentiment.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity recorded a loss – closing at 43.68ppt and £43.68/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

energy price graph - 13-03-2017

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.