|Gains were recorded across the gas curve on Friday as the system fell short due to on-going outages in the North Sea. This drop in supply helped contracts rebound after a bearish opening, with oil failing to offer much support in either direction.
|Power prices moved higher on Friday afternoon with direction coming from a rebound on gas and oil markets. Outages at nuclear facilities continued to impact supply levels, while the forecast for renewable generation was mixed.
|The UK gas system has opened 7mcm long this morning as demand levels have dropped 18mcm below the seasonal norm. A rise in Norwegian imports and UKCS production has also contributed to the oversupply. Meanwhile, LNG send-outs at South Hook are at 12mcm today with 2 cargoes expected to dock before the end of the month. Overall, today’s outlook is stable to bearish as a result of the improved supply outlook.
|Upward movement on the power curve has been restricted by a healthier gas supply outlook. Wind generation is also set to improve later in the week but will drop off after the weekend. Solar power is expected to rise over the next few days as sunnier weather has been forecast for this week.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices are stable at present and trade around $51.8/b since posting a small gain towards the end of Friday’s session. A rise in active US oil rigs was offset by an upward revision in the IEA’s demand forecasts, although compliance in regards to OPEC cuts remains a concern.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 44.50ppt and £44.94/MWh, respectively.
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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.