|Market Close||Market Close|
|Gas prices moved higher on Friday as temperature forecasts were revised down for the next couple of weeks which will lead to a rise in residential demand. Production at the Groningen facility in Holland was also reduced, with further sanctions a possibility following the recent earthquake. Meanwhile, far-curve contracts continued to find support from a bullish oil market.||Power prices followed their gas counterparts and traded higher on Friday with the help of a colder weather forecast for this week. The prompt was an exception to the upward movement as wind levels were expected to improve over the weekend and the start of this week. Further out, a drop in coal prices capped some of the gains but support was provided by a weak Pound and rising Brent.|
|Market Open||Market Open|
|Near-curve gas contracts have decreased as UK temperatures have been revised higher, with lower LDZ demand now expected over the next 11 days. The system has also opened 27mcm long, with a rise in wind levels reducing CCGT demand. Imports via the BBL and IUK pipelines are almost unchanged from Friday but storage withdrawals are lower. Bearish movement can also be observed at the back of the curve but the losses have been restricted by high oil prices.||Temperatures are now set to turn milder in the coming days following another revision in forecasts. This expected drop in heating demand has provided downward pressure at the front of the curve, while similar wind levels are expected for tomorrow. Coal displays another small loss and oil prices have eased off slightly but remain close to a 3-year high.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have softened slightly after hitting the $70/b mark and now trade around $69.7/b; American shale production remains the main point of interest for traders.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 49.63ppt and £48.01/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.