|Market Close||Market Close|
|The UK gas system was long throughout yesterday's session as residential demand remained below the seasonal average due to mild weather. The outage at the Bergermeer storage site was also expected to be resolved this morning and movement at the front of the curve was largely bearish. Contracts further out were more stable due to an expected drop in temperatures next week, while LNG supply remains weak.||An expected rise in wind levels today and continued mild weather this week resulted in a loss for Day-Ahead power yesterday. However, fundamentals are expected to turn weaker next week, with strengthening APi2 coal also a bullish factor.|
|Market Open||Market Open|
|Downward movement on the oil market has helped to limit upward movement on the gas curve this morning but the overall outlook remains bullish. An unplanned outage at Bacton has limited supply in the UK, while Norwegian exports to Europe are down. A colder weather outlook for next week also supported prices, while weak wind levels will contribute to a rise in CCGT generation. Elsewhere, the Bergermeer storage site in Holland has returned online, with nominations for withdrawal back at 282GWh.||Power contracts have added to their price this morning but a weaker oil market could result in losses this afternoon. A slight drop in temperatures next week should raise consumption levels, while wind generation should remain low; supporting the prompt. An increase in coal prices has also helped to lift far-curve contracts with some supply concerns in China and Colombia; two of the biggest coal producing countries.|
Brent 1st-nearby prices display a sizeable loss this morning despite a supportive EIA report, as the Dollar strengthened on the back of Janet Yellen's press conference at the Federal Open Market Committee meeting. Yellen surprised the market by announcing a more significant interest rate increase for 2017 than expected.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 44.88ppt and £44.67/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.