|Market Close||Market Close|
|Gas prices increased during Monday’s session with support provided by maintenance at Norwegian gas fields and a short UK gas system. Weaker wind resulted in higher gas-fired generation, while demand for storage injections was also stronger due to the low cost of the Day-Ahead contract compared to Front-Month.||The majority of power contracts climbed higher on Monday with direction coming from a short gas system. Strong solar power slightly offset weak wind generation but the warm weather resulted in higher cooling demand. In other markets, coal recorded a sharp gain, while oil displayed another small loss.|
|Market Open||Market Open|
|Today’s announcement regarding the permanent shutdown of the Rough storage facility has supported prices this morning, read more here. Warm weather continues to weigh on demand levels and the expected drop in temperatures later in the week is set to be short-lived. Despite the fall in demand, the UK gas system is 18mcm short due to strong CCGT generation and an unplanned outage in Norway.||The gains recorded by gas contracts have supported their power counterparts this morning, with the Rough’s permanent closure the main market driver. Wind levels remain low but an increase is expected towards the end of the week and over the weekend, limiting upward potential on the prompt. Further out, another increase in coal has helped to lift some contracts, although the oil market continues to weaken.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices are closing in on a 7-month low ahead of tomorrow’s EIA report. Another technical rebound looks unlikely as high US production and an increase in Libyan & Nigerian output continues to fuel bearish pressure.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 41.75ppt and £42.74/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.