|Gas prices displayed strong losses yesterday with near-curve contracts pressured down by an oversupplied system. Healthy Norwegian flows and reduced exports helped the system remain 40mcm long throughout the session. Further out, contracts found direction from a drop in oil prices following a rise in US stocks.
|Power prices followed the gas market in the afternoon with healthy supply and bearish commodities the main market drivers. Oil, coal and carbon contracts all moved down, while a weaker renewable outlook was offset by strong LNG send-outs.
|The system has fallen close to balance this morning due to high storage injections which has resulted in gains at the front of the gas curve. The winter contract was the exception to the upward movement, while weaker Brent, coal and carbon has restricted gains further out.
|Coal, carbon and oil markets display further losses this morning which continues to weigh on the far-curve. The front of the curve displays some losses despite a rise in gas, while an expected rise in renewable power tomorrow has helped the prompt shed from its price.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices fell to just above $80/b yesterday following a rise in US crude stocks. However, bullish resistance was provided by on-going concerns regarding Iranian exports, with issues in Saudi Arabia also a factor.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity moved down – closing at 65.10ppt and £60.58/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.