|Despite a late rally for oil prices, commodity markets were bearish on Wednesday which pressured down gas contracts. A rise in renewable availability will reduce gas-fired power demand, with warmer weather and stronger LNG send-outs also expected; weighing on the near-curve.
|Power prices decreased yesterday with downward pressure provided by weaker coal, gas and carbon. Wind levels were also forecast to rise over the coming days and warmer temperatures will reduce demand, helping towards the losses.
|The UK gas system is slightly short this morning but 4 large LNG deliveries are expected to dock in the UK over the next week which will boost supply. However, gas prices have opened marginally higher, with a rebound in Brent a contributing factor.
|Power prices have found support from a rise in coal and oil this morning which has also impacted the gas curve. Short-term fundamentals are largely unchanged with wind levels rising as expected today and a more positive outlook for gas supply next week.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices were bearish for the majority of yesterday’s session but recovered later in the day and continue to strengthen this morning. On-going tension between the US and Iran provided the support, with the help on a bullish Fed report.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & electricity decreased – closing at 46.90ppt and £51.73/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.