|Market Close||Market Close|
|Gas prices displayed mixed changes on Monday with contracts on the near-curve recording a loss, while those further out strengthened. Temperatures have been revised higher for the next few days which weighed on prompt prices, while supportive coal and oil markets contributed to gains further out. The UK gas system remained oversupplied but Norwegian flows decreased during the session due to an unplanned outage.||Power prices were generally bearish on Monday with near-curve contracts mirroring the losses displayed by their gas counterparts. Temperatures for this week were revised higher and renewable generation increased, adding to the downward pressure. However, coal and oil markets continued to strengthen, limiting losses on the far-curve.|
|Market Open||Market Open|
|Coal and oil prices have moved down this morning and this could weigh on gas contracts as the session progresses. In terms of fundamentals, demand levels remain low due to warmer weather and Norwegian flows are back to normal as yesterday’s outage was resolved. The UK gas system is still oversupplied despite strong exports via the IUK interconnector and the outlook remains stable-to-bearish.||Movement along the power curve is varied this morning with some small losses at the front of the curve and gains further out. A healthy solar generation forecast and mild weather continues to pressure down prompt contracts, while a bullish outlook for coal has restricted downward movement on the far-curve.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have fallen below $53.5/b following the sale of almost 50% of the US Strategic Petroleum Reserves (SPR) on the back of a new preliminary budget document. This document proposes a move which could see a significant amount of oil flood the market over the next decade, offsetting global efforts to reduce output levels.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 42.95ppt and £42.45/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
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.