|Gas prices strengthened on Friday afternoon on the back of a colder weather forecast for this week, with weaker Norwegian flows via the Langeled pipeline also a supportive factor. However, upward movement was less visible on the far-curve as weakening oil helped to weigh on contracts.
|Consumption levels are expected to rise at the start of this week due to colder weather which offered support to power contracts on Friday. However, gains on the prompt were restricted by an improved wind generation forecast for today. Further out, weaker oil and coal markets helped to restrict some of the bullish movement although a weakening Pound ensured contracts moved higher.
|Currency markets continue to affect gas prices as the first round of results from the French presidential election resulted in a stronger Euro, supporting near-curve contracts. Meanwhile, maintenance at Norwegian facilities will restrict imports to the UK and demand levels over the next few days will be above average; as a result, today’s outlook for gas prices is bullish.
|Most power contracts have increased this morning with the exception of the prompt which has been pressured down by decreases on the oil market and a milder weather forecast for the start of May. The rest of the curve has been dictated by rising gas and a strengthening Euro.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices decreased by around $1/b over the weekend and now trade below $52/b. The oil market has decreased by around 7% since the start of last week as a higher rig count added to oversupply concerns.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 43.53ppt and £42.92/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.