20th March 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed little movement during Monday’s session as temperatures are expected to turn milder later in the week which will reduce residential demand. However, any downward movement was restricted by outages at Norwegian and UKCS facilities. Further out, the Pound strengthened against the Euro and coal prices weakened, offsetting the effects of rising Brent. Strong wind levels and an expected rise in temperatures helped the prompt record a strong loss yesterday. The rest of the near-curve was generally stable as below average temperatures tightened gas supply, although the remainder of March is expected to be mild. Movement further along the curve was also minimal with coal and oil markets moving in opposite directions.
Market Open Market Open
A revision in the short-term weather outlook suggests below average temperatures over the Easter weekend, with a possible cold start to April. This higher demand outlook has helped near-curve contracts climb higher, with a short system also a contributing factor. On the far-curve, another rise in oil prices has helped towards gains, with weaker coal having little impact. Wind generation is expected to fall tomorrow and Thursday but solar power should remain comfortable, helping the prompt record a small loss. The rest of the curve has followed the gas market, with the latest weather runs providing support. Meanwhile, rising Brent continues to fuel bullish sentiment at the back of the curve.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent 1st-nearby prices have increased for a fourth consecutive session to trade at $66.5/b this morning. Bullish sentiment has been provided by disruptions to oil supply in Venezuela, Azerbaijan potentially becoming an OPEC member and optimism in regards to the US visit to Saudi Arabia.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 49.20ppt and £48.88/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

energy price graph - 20-03-2018

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.