|Temperatures were forecast to turn colder later this week, continuing till the end of the month, resulting in upward movement on the near gas curve on Friday. Further out, contracts were pushed higher by increases on coal and oil markets, with APi2 coal climbing above $81/tn.
|Temperatures were expected to drop below the seasonal norm towards the end of the week and could remain cold until the start of March, increasing heating demand. Low wind levels were also forecast for the start of the week, lifting the prompt, while stronger fuel markets supported the far-curve.
|The system has opened 24.5mcm long as demand is 15mcm below the seasonal norm, however, prices have increased due to a cold weather outlook for the remainder of February and the start of March. Meanwhile, Brent and coal have strengthened once again, helping towards gains at the back of the curve.
|The outlook for today is almost unchanged from Friday as cold weather continues to dictate movement at the front of the power curve. Wind generation is weak, as expected, while the rest of the curve has opened at a premium on the back of rising coal and oil contracts.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have moved higher over the weekend and now trade above $65/b with support provided by a recovery on the Asian stock market, with tensions in the Middle East also a bullish factor.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity recorded increased – closing at 47.11ppt and £46.67/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
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