22nd August 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices increased across the curve on Tuesday with direction provided by lower supply and stronger commodities. Ongoing maintenance in Norway limited flows into the UK, contributing to a short system, while bullish oil and carbon markets supported the far-curve. Near-curve power prices eased down yesterday with temperatures forecast to remain around the seasonal norm over the next two weeks, while a healthier wind outlook for today weighed on the prompt. Further out, contracts moved higher, tracking their gas counterparts, with support provided by higher fuel costs.
Market Open Market Open
The system is slightly long this morning as flows from Norway have increased, however, prices at the front of the curve remain bullish on the back of rising power, coal, oil and carbon markets. Carbon in particular is showing strong movement, trading close to €20 which will lead to less coal being used in Europe, with countries instead turning to gas-fired power as it produces less emissions. Power prices have opened higher this morning, influenced by European commodity markets, with the think tank, Carbon Tracker predicting carbon to hit €40 in the next 5 years. The prompt is one of the few contracts to move down as similar renewable power levels are expected tomorrow.

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

Brent Summary

Brent 1st-nearby prices remain bullish and trade around $72.6/b this morning on the back of a weaker Dollar and supportive API figures. Meanwhile, supply concerns regarding Iran and Venezuela continue to linger.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 63.60ppt and £61.85/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 - 22-08-2018

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.