|Market Close||Market Close|
|A milder weather outlook for the rest of the month and a sharp drop in oil prices helped gas contracts move down across the curve on Wednesday. The system remained oversupplied despite maintenance at a Norwegian gas field, while weaker coal also contributed to losses. In other news, production cuts in Holland were delayed for 12 months, providing additional bearish pressure.||Power contracts followed the gas curve yesterday with an uptick in temperatures weighing on demand levels, with milder weather set to continue for the time being. A drop in coal and oil prices helped to pressure down contracts further along the curve, while an expected rise in wind generation today resulted in a strong loss on the prompt.|
|Market Open||Market Open|
|The UK gas system has opened 12mcm long as demand levels sit 25mcm below the seasonal average and temperatures are expected to remain 2°C above the seasonal norm for the rest of the week. The delay in output restrictions at Groningen continues to restrict upward movement on the near-curve, while a slight rebound in coal and oil has provided some support on the far-curve.||Wind levels are inconsistent at present and an expected drop tomorrow has helped the prompt climb higher this morning. Mild temperatures and healthy gas supply have helped to limit gains on the near-curve, while the far-curve has found some support from a weak Pound and a small recovery on fuel markets.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have stabilised since yesterday’s open as reports of increased production levels have been offset by optimism in regards to an extension of the current OPEC deal, with a meeting scheduled at the end of the month.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 48.80ppt and £47.54/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.