|Market Close||Market Close|
|Production at the Groningen gas facility will be cut by 10% in the 2017/18 gas year, falling from 24bcm to 21.6bcm; this resulted in strong upward movement on European markets. Meanwhile, the Pound weakened following Theresa May’s call for a snap election, slightly limiting gains at the front of the curve and offering support to those further out. Temperatures are also expected to remain below average for the rest of April, further contributing to the bullish sentiment.||The news regarding Dutch gas output and the confirmation of a snap election helped power contracts to rally even higher yesterday afternoon. Sentiment at the start of the session was bullish due to rising gas prices, below average weather and weaker wind generation. Coal and oil markets moved down but this failed to have much impact on the power curve.|
|Market Open||Market Open|
|UKCS production has decreased this morning due to planned maintenance at the St-Fergus terminal. Exports to Belgium are also higher which has resulted in a tighter UK gas system. Residential demand is expected to rise further next week and increases can be seen across the near gas curve. However, weaker oil has helped to restrict gains on the far-curve and a downward correction cannot be ruled out.||Power contracts have strengthened this morning with direction coming from rising European gas markets and a colder weather outlook. Consumption levels are expected to increase next week due to below average temperatures and the wind generation forecast is rather weak, a drop in the Pound also continues to dictate some contracts.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices decreased by around $0.50/b yesterday as trading resumed following the Easter weekend. The current market trend is unclear despite the recent downward correction as recent API figures were generally supportive.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 44.03ppt and £43.05/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.