|Market Close||Market Close|
|Rising coal prices and a short system did little to prevent gas contracts recording a loss yesterday, with the majority managing to erase Monday’s gains. An improved supply/ demand outlook helped to weigh on prices as Norwegian flows are set to rise and strong wind levels will reduce CCGT demand.||The power curve failed to display a real trend yesterday with healthy renewable generation weighing on the prompt. However, wind levels should decline later in the week and this offered support to the rest of the near-curve, with weaker oil limiting gains further out.|
|Market Open||Market Open|
|The UK gas system has opened long this morning following a drop in demand and improved supply. Healthy wind generation is the main factor behind lower demand levels, while Norwegian flows are slightly higher as the impact of the outage at Kollsnes is not as significant as initially expected. Further out, some volatility could be expected this afternoon when the latest EIA report is released.||Power prices are almost unchanged from yesterday’s close as healthy wind levels have reduced the need for more expensive gas-fired generation. Wind power is set to drop tonight and remain low until next week, although solar power should improve slightly. Meanwhile, coal prices continue to rise due to Chinese demand, restricting bearish movement at the back of the curve.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent trades close to $48.8/b today following some minor losses during yesterday’s session as the bullish trend over the last week has slowed down. Reports of higher output in Libya and Nigeria helped to weigh on prices yesterday, while crude stocks are also forecast to rise.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 41.93ppt and £42.87/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 on01257 239500 or using the form on our contact form.