|Gas prices climbed higher yesterday, with the larger gains displayed at the front of the curve. A colder weather outlook for the coming days offered support to the near-curve, however, a long system provided some bearish resistance. Further out, prices were pushed higher by carbon and oil markets.
|Power prices found support from an expected rise in demand due to cold weather, in addition to a further rise on carbon markets. Most contracts followed their gas counterparts, with a rebound in oil also a factor further along the curve.
|Gas contracts continue to increase with little change to fundamentals as temperatures have turned colder and wind power has dropped, resulting in higher gas demand. Oil and coal markets have stabilised but carbon remains bullish and has helped to lift far-curve contracts.
|The prompt is the exception to the bullish trend this morning as milder weather is expected to return later in the month and wind levels should increase over the weekend. The rest of the curve has followed stronger gas and carbon, while oil shows little change from yesterday.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices rebounded but sentiment on oil markets remains mixed with little support in either direction provided by Wednesday’s EIA report. Meanwhile, weak demand figures from China are offsetting the effects of planned production cuts.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased slightly, while commercial electricity climbed higher – closing at 62.40ppt and £62.02/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.