|Market Close||Market Close|
|An improved supply outlook and a milder weather forecast weighed on near-curve gas contracts yesterday. The Langeled pipeline returned following a 1-day shutdown and above-average temperatures should reduce demand levels, weighing on prices, with a comfortable European LNG outlook also a factor. Further out, a sharp drop in coal prices offset the impact of bullish oil.||Stable wind levels and a mild weather forecast limited upward movement on the power curve yesterday, with improved gas supply also applying bearish pressure to the curve. Brent rebounded following improved production figures released in the US but coal decreased, restricting the gains.|
|Market Open||Market Open|
|The supply outlook remains healthy as Russian imports to Europe are set to rise with the return of the Nordstream pipeline. However, the system has opened short as the outage at Kollsnes has been extended to Monday, limiting downward movement at the front of the curve. Contracts on the far-curve display minimal movement as the oil market is range-bound and coal is stable.||Healthy wind generation for the next few days weighed on the prompt this morning, although limited renewable power is forecast for next week. The far-curve is largely unchanged as a drop in coal has cancelled out yesterday's rebound on the oil market.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have increased by around $0.80/b and currently trade above $56.1/b. The market has turned bullish following the release of yesterday’s EIA report which showed a recovery in production, with the upcoming OPEC meeting also fuelling some optimism.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased slightly – closing at 45.17ppt and £46.03/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.