16th February 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Weather forecasts for next week were uncertain yesterday and this resulted in some bearish movement at front of the gas curve. The prompt moved down on the back of a mild weather outlook for today, although CCGT demand was set to rise, ensuring any losses were minor. Further out, a downward correction in coal and oil prices helped most contracts record a loss. Mild and sunny weather was forecast for today but wind levels were expected to halve, meaning the prompt displayed little movement. Changes across the rest of the near-curve were also minor due to contradictory weather forecasts for next week, while the back of the curve was static due to stable fuel markets.
Market Open Market Open
Gas contracts have opened higher this morning as forecasts have been revised and point towards a cold stint next week. The system has also fallen 12mcm short due to a rise in gas-fired power generation, weaker IUK flows and the on-going outage at Entry Segal. Meanwhile, the oil market is slightly bullish, limiting the effects of weaker coal. Day-Ahead power has increased this morning due to next week’s cold weather forecast, with wind levels unlikely to improve. The gains have filtered through to the rest of the near-curve with April-18 the exception. Oil and coal markets have failed to provide much direction further along the curve and any changes are insignificant.

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

Brent Summary

Brent is almost unchanged from yesterday and currently trades just above $64.3/b with support provided by a weaker Dollar, although optimism in regards to OPEC/ non-OPEC production cuts created some resistance.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity recorded a small loss – closing at 46.14ppt and £46.04/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 - 16-02-2018

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.