|Near-curve gas prices turned bearish yesterday as UK supply was comfortable. LNG send-outs in Europe were at their highest levels since the end of February, while the system was oversupplied due to strong Norwegian flows, improved wind levels and milder weather. Further out, a rebound on coal, oil and carbon markets restricted any losses.
|A rise in coal, carbon and oil markets was countered by a decrease in gas prices which resulted in mixed movement across the power curve, with most contracts ending the session almost unchanged. However, the prompt found support from an expected drop in wind levels today.
|Gas prices have ignored a colder weather outlook this morning and display further losses. Instead, prices have found direction from an oversupplied system with healthy Norwegian and LNG supply offsetting a rise in demand. The current focus is on Brexit negotiations with any news likely to impact the Pound which will transfer to energy prices.
|Weaker wind levels and a colder weather forecast has helped power prices move higher this morning although any gains were capped by a drop in gas. Further out, contracts continue to take direction from recovering commodity markets.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices continue to climb higher as we head closer to sanctions on Iran taking effect which could tighten global supply; the latest API figures are also supportive.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved in the opposite direction – closing at 64.65ppt and £61.25/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.