|Gas prices moved down on Tuesday following a rise in Norwegian supply which resulted in a long system. LNG nominations at South Hook also ramped up and weaker coal & oil markets helped to pressure down contracts on the far-curve.
|Contracts at the front of the power curve shed from their price yesterday as wind levels were forecast to rise today and demand was below the seasonal average. Contracts further out were pressured down by a drop in coal prices, with oil also displaying a decrease.
|The UK gas system opened 3.3mcm long this morning as demand levels remain below the seasonal norm. Langeled flows have dropped by 8mcm following an unplanned outage at Gullfaks, while one LNG delivery is expected to dock in the UK over the weekend. Movement across the curve is generally bullish with a weaker Pound and a rebound in oil prices supporting the far-curve.
|Improved wind generation and lower demand continues to apply downward pressure to the near curve this morning. However, movement further along the curve is bullish as coal and oil markets have recovered. An increase in cloud cover and lower wind levels over the next few days could also support the prompt this afternoon.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices fell below $51/b yesterday but have rebounded back to $51.2/b this morning, with support coming from positive API figures and disruptions to Libyan oil supply.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 44.05ppt and £44.83/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.