|Early gains were slashed in European gas prices on Monday due to an upward revision in temperature forecasts and comfortably supplied gas systems. Although strong EUA prices continued to be supportive for the gas curve on the back of the expiry of the Dec 18 contract.
|Declining demand conditions, comfortable nuclear availability in France and rebounding wind power supply meant spot prices were down yesterday. Temperatures also remain higher than seasonal averages.
|Bearish fundamentals should weigh on European gas prices and erode the risk premium in near-term contracts. Mild and windy weather expectations for the Christmas period should drag gas demand down whilst weak Asian LNG prices should keep Europe well supplied in LNG.
|A stable view for the spot prices today as conditions are not set to get tighter immediately. Further out, the market looks a little overbought meaning EUA prices may settle down today. A stable to bullish outlook is still expected over the short term.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have held steady over the last 24 hours. Current level standing at $60.40/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased slightly – closing at 62.59ppt and £62.48/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.