|Market Close||Market Close|
|Prices moved down yesterday due to an upward revision in temperature forecasts for the rest of the month, pointing to weaker demand levels. Coal and oil markets also displayed strong losses which helped contracts at the back of the curve move down, although the Euro continued to strengthen against the Pound, limiting some of the losses.||A milder weather outlook weighed on power contracts yesterday with direction coming from a weaker gas market. A sharp drop in wind generation was expected today, resulting in a small gain on the prompt but the rest of the near-curve was pressured down by the expected decrease in heating demand. Further out, weaker coal and oil markets helped contracts move down despite a weak Pound.|
|Market Open||Market Open|
|Another revision to the short-term weather forecast has predicted even milder temperatures, further weighing on prices this morning. The system remains long despite planned maintenance at a Norwegian gas field which will last until the 23rd of November, restricting flows by 20mcm/ day. Meanwhile, production cuts at the Groningen facility in Holland have been delayed by 12 months and output will continue at current levels for the time being.||Power prices continue to follow their gas counterparts and weaker fuel markets, with losses displayed across the curve. Temperatures for November have been revised higher once again, while wind levels are expected to rise significantly tomorrow, helping the prompt shed from its price.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display another loss and currently trade below $61.6/b, with bearish pressure provided by the release of this month’s IEA report. The report raised concerns about rising non-OPEC production levels, in particular US shale.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 48.32ppt and £47.18/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.