17th February 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Norwegian flows were impacted by unplanned outages yesterday, while the return of the Rough storage facility has been delayed further, pushing gas contracts higher. The UK gas system was short on the back of this drop in supply, while a rise in coal prices supported contracts further along the curve. Power contracts moved higher yesterday afternoon with direction coming from increases on the gas and coal market. However, a warmer weather outlook and an improved wind forecast limited gains at the front of the curve.
Market Open Market Open
A mild weather forecast, as well as an expected rise in wind generation will reduce demand levels next week, resulting in losses across the near gas curve this morning. The UK gas system opened long as UKCS production has increased and the outage at Oseberg has been resolved which should see a significant rise in Norwegian flows on Monday. Power prices decreased this morning, tracking the losses on the gas curve, with a milder weather forecast also providing bearish pressure. Weaker coal and oil helped to weigh on contracts further along the curve, while wind levels are also set to improve next week, reducing the nation’s reliance on CCGT generation.

Brent Summary

Brent 1st-nearby prices have recorded a small loss following a bearish stocks report, with little else currently affecting the market; Brent trades just above $55.7/b this morning.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 46.75ppt and £45.37/MWh, respectively.

Today’s prices can also be found in an easy to read table on or ‘current UK energy price' page.

Click graph to enlarge

energy price graph - 17-02-2017

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.