|Gas prices recorded small gains yesterday, with stronger oil providing on-going support. Prices were also helped to increase by a rising coal market, with a tight gas system also a factor as Norwegian imports remained low. Overall fundamentals were bullish as the Pound weakened once again and cooler temperatures were forecast for this week.
|A significant drop in renewable generation contributed to strong gains at the front of the power curve yesterday, with demand levels also expected to rise on the back of cooler weather. Further out, the sentiment was generally unchanged with gains on coal and oil markets continuing to drive contracts higher.
|Short-term temperatures have been revised marginally higher this morning and Norwegian flows have increased as scheduled maintenance is coming to an end, losses can be seen across the near gas curve as a result. However, weaker wind levels have led to a jump in gas-fired generation and the outlook for today is expected to be stable, with little support provided by oil and coal markets.
|Wind generation is expected to remain low for the rest of this week but should ramp up after the weekend. Cloud cover is also limiting solar power in the UK and slightly cooler temperatures have lifted demand, limiting losses on the near-curve. A warmer weather outlook for tomorrow has helped the prompt shed from its price, while strengthening coal has pushed far-curve contracts higher.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices fell below $52/b yesterday afternoon but have recovered back to around $52.3/b this morning. News regarding an extension to output cuts continues to provide support but not enough to stave off the bears completely following this month’s IEA report which showed a drop in demand.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 42.05ppt and £41.70/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.