20th September 2016 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Unplanned outages helped to support the prompt and contracts across the near-curve on Monday, with maintenance at the St Fergus pipeline restricting supply levels in the UK. Further out, the sentiment turned bearish in the afternoon as a result of the drop in oil prices. Day-Ahead power displayed a strong gain of over £60/MWh yesterday due to a tight system, on the back of weak generation levels. Meanwhile, movement further along the curve was largely bearish as the spark spread for gas-fired power generation narrowed, while coal and oil contracts also decreased.
Market Open Market Open
Gas contracts display further gains this morning as UKCS output and Norwegian flows remain low. However, LNG send-outs are healthy which has helped to restrict some of the upward movement, with a delivery expected to arrive from Qatar today. The prompt has also been supported by a rise in gas-fired power generation, while exports to Europe are also higher. The prompt has erased most of yesterday's gains this morning as wind generation is forecast to improve in the coming days, although reliance on coal-fired generation remains higher than usual. Contracts further along the curve also continue to move down on the back of weaker fuel prices.

Brent Summary

Brent 1st-nearby prices decreased yesterday with bearish pressure provided by the meeting in Algiers between OPEC and non-OPEC members which resulted in pessimistic feedback from the Venezuelan Oil Minister; with the troubles in Libya and Nigeria having little impact.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 38.62ppt and £43.45/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 - 20-09-2016

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.