|Market Close||Market Close|
|Gas prices initially opened at a discount but rallied higher throughout the session on the back of stronger coal and oil markets. Meanwhile, the UK gas system was oversupplied following a rise in Norwegian flows and improved LNG send-outs at the South Hook terminal, weighing on the prompt. The market now awaits Thursday’s OPEC meeting, while on-going issues in Australia helped APi2 coal to hit its highest price since October 2014.||Movement on the power curve was varied on Tuesday with improved renewable generation and lower demand weighing on contracts at the front of the curve, while the far-curve was pressured higher by strengthening fuel prices.|
|Market Open||Market Open|
|The UK gas system has opened short this morning as flows via the Langeled pipeline are down by 50% despite no apparent outages. This drop in supply has helped to lift the prompt despite a warm weather forecast which will reduce demand. Elsewhere, coal and oil markets have stabilised but movement on the far-curve remains bullish.||Most power prices continue to add to their price this morning as warm temperatures are expected to increase cooling demand as we head towards the weekend. Stronger gas contracts have also contributed to gains on the power curve, while coal and oil markets remain supportive.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have increased by over $1/b since yesterday’s open; Brent has strengthened in 10 out of 11 days since the announcement by Saudi Arabia and Russia, rising by around 10% since the start of May. All eyes will be on Vienna tomorrow afternoon as the deal is set to be outlined in the 127th OPEC meeting.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 43.50ppt and £42.78/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.