|Demand levels reached their highest levels in 2017 so far, pushing contracts higher yesterday. This resulted in a rise in European exports into the UK, although healthy Norwegian supply helped to relieve the strain. Further out, a weaker Pound provided support but coal and oil moved down in the afternoon, limiting the gains.
|Renewable levels were not expected to improve much today and gas-fired power was set to remain high, helping towards gains on the near-curve yesterday. Heating demand was also above the seasonal norm, further adding to the bullish sentiment. A weak Pound contributed to gains on the far-curve, although weaker fuel prices provided some resistance.
|Gas prices on the near-curve have weakened this morning as milder temperatures have been forecast for later in the month. The system has also opened 9mcm long despite strong CCGT generation. However, Norwegian flows are expected to decrease tomorrow due to planned maintenance. On the far-curve, prices have been pressured down by bearish movement on the oil market.
|The weather outlook for November is expected to be milder and power contracts have tracked their gas counterparts and moved down this morning. The coal market has increased slightly but oil displays a strong loss, resulting in minor movement on the far-curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have dropped by around $1.3/b since yesterday’s open due to concerns regarding a rise in US shale output in 2018. The monthly OPEC report provided support but this was quickly erased by the US Drilling Productivity Report which expects another rise in production next month.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 48.78ppt and £47.50/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.