|Market Close||Market Close|
|Gas contracts increased on Friday following a rise in buying interest as traders looked to exploit strong losses earlier in the week. Norwegian flows were also restricted due to on-going maintenance at a number of fields. Meanwhile, coal and oil contracts strengthened, offering additional support to the far-curve, with a weaker Pound also a factor.||Power prices opened at a discount on Friday due to strong wind generation and a weakening coal market. The bearish sentiment was somewhat short-lived as gas prices turned bullish in the afternoon and renewable generation levels were revised down for this week, erasing some of the morning’s losses.|
|Market Open||Market Open|
|Rising oil contracts have pushed gas prices higher this morning following an agreement between Saudi Arabia and Russia to extend production cuts. LNG send-outs are also lower and exports to Belgium have increased, resulting in a short system. However, temperatures are expected to rise over the coming days and Norwegian flows are set to improve, limiting the gains on the near-curve.||Power prices have taken direction from strengthening fuel markets, with a jump in oil helping to support the gas curve. An uptick in temperatures is expected over the next couple of days but wind generation is forecast to decline as the week progresses, with low levels expected to continue into next week.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have increased by over $1/b this morning following news that Saudi Arabia and Russia have agreed to extend oil output cuts until March 2018. The news came unexpectedly with most traders anticipating long, drawn-out negotiations; Brent now trades at $52/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 41.60ppt and £41.47/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.