15th October 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved higher on Friday as temperatures for this week were revised down and an increase in storage injections is expected, tightening the system. Residential demand was forecast to rise by over 30mcm today but improved LNG flows should help to make up the difference. Further out, prices continued to take direction from rising commodity markets. A rise in carbon helped far-curve power prices move higher on Friday, with the trend turning slightly bullish thanks to a recovery in global financial markets. Wind and solar levels were expected to fall this week, while temperatures were revised down, resulting in a stronger prompt.
Market Open Market Open
A recovery in European energy and commodity markets has helped towards gains across the gas curve this morning. Coal, oil and carbon contracts have all increased since Friday, while a drop in temperatures and weak renewables has lifted gas demand, offering additional support to the front of the curve. Fundamentals are unchanged this morning, with improved commodity markets and weaker supply contributing to gains across the power curve. Renewable generation levels have dropped as expected, while colder weather has lifted demand.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent 1st-nearby prices rebounded over the weekend with support provided by the disagreement between the US and Saudi Arabia in terms of oil pricing. However, any gains were limited by a bearish US rig count and a weaker demand forecast.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 67.28ppt and £65.53/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

energy price graph - 15-10-2018

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.