17th January 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed mixed changes yesterday during a volatile session, with a stronger Pound providing some bearish pressure in the afternoon. Meanwhile, contracts on the far-curve found support from rising oil prices. The power market was similar to gas yesterday and displayed varied movement due to the Pound strengthening against the Euro and gains on coal & carbon markets. Renewable levels were forecast to improve slightly this morning but colder weather was expected to lift heating demand, offsetting any impact.
Market Open Market Open
The UK gas system has opened long this morning despite a sharp drop in temperatures which should continue for the remainder of the month. As a result of this cold weather outlook, near-curve gas prices have increased, with the far-curve supported by stronger coal, oil and carbon markets. Fuel markets remain bullish, with gas, coal, carbon and oil all displaying gains which has helped to lift power prices. The cold weather outlook remains a key driver of prices, with wind levels also expected to drop in the coming days.

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

Brent Summary

Brent-1st nearby prices increased further yesterday but have softened slightly this morning as US crude production is higher. Brent currently trades around $61.3/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity displays a small loss – closing at 59.35ppt and £58.90/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 - 17-01-2019

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