21st June 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed mixed movement yesterday with a tight UK gas system offering support at the front of the curve and a falling oil market weighing on the far-curve. A drop in Norwegian supply and a rise in storage injections contributed to the short system, despite lower demand levels. Elsewhere, coal prices stabilised and the Pound weakened further against the Euro. Bullish movement on the gas curve, following the news regarding the shutdown of the Rough storage facility helped prompt power contracts climb higher on Tuesday. Wind generation was set to increase today which helped to restrict some of the gains, while a weaker oil market offered resistance on the far-curve.
Market Open Market Open
The short system continues to push contracts at the front of the curve higher, with low wind generation and high storage injections tightening supply. Supply has been impacted further by on-going outages in Norway and a drop in UKCS production. Coal prices remain bullish but oil prices show another sizeable loss and have limited upward movement on the far-curve. Power contracts have added to their price this morning with support coming from the gas market. Wind generation is expected to rise on Friday and over the weekend but solar power should decline during the same period. Very warm temperatures have contributed to higher consumption levels but these levels should drop next week.

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

Brent Summary

Brent 1st-nearby prices display strong losses, dropping to $45.42/b yesterday before recovering to around $45.7/b this morning. The outlook for oil is very weak with traders unconvinced by OPEC’s efforts to support the market as output in the US is strong.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 42.18ppt and £43.24/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 - 21-06-2017

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.