|Market Close||Market Close|
|Long gas systems across Europe and a weak demand outlook resulted in further downward movement on Monday; the UK gas system in particular was oversupplied by 50mcm. LNG send-outs remained high which pressured down the prompt and the losses filtered through to the rest of the curve, with coal and oil markets providing little support.||Power contracts were bearish on Monday, displaying even stronger losses than their gas counterparts. A mild weather outlook will continue to weigh on consumption levels, while a rise in wind and solar generation also helped to weigh on the market.|
|Market Open||Market Open|
|The UK gas system remains long this morning despite weaker Norwegian flows and an increase in exports to Belgium. Temperatures are set to remain mild and stable domestic production is expected, limiting gains at the front of the curve. However, support has been provided by an increase in coal prices and another drop in the Pound.||Power contracts have moved higher this morning, following gains on the gas curve, with direction also coming from a weakening Pound on the back of recent Brexit developments. Meanwhile, coal prices have jumped higher as a result of a drop in Chinese coal output.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices are stable at present following strong losses at the end of last week; prices currently trade just above $51.5/b. Uncertainty in regards to OPEC and non-OPEC production cuts, a rise in US inventories and an increase in US shale gas output have all limited any bullish movement.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 43.95ppt and £43.80/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.