|Market Close||Market Close|
|It was announced yesterday that production at the Groningen gas facility would be cut by 10%, falling from 24bcm to 21.6bcm; additional restrictions will also be placed on output in colder years. This news offered some support to the curve later in the session but a warm weather outlook and the expected arrival of LNG deliveries in the coming week helped to restrict any gains.||Higher consumption levels and gains on the gas and coal markets helped power contracts to close at a premium on Thursday. Improved renewable generation limited gains on the prompt but the far-curve was dictated by a strong coal market, with oil prices also expected to increase today.|
|Market Open||Market Open|
|Gas prices display little movement this morning with minimal losses recorded across the curve. Warm weather continues to weigh on gas demand, although the system is short due to weaker Norwegian flows. Bearish pressure has been provided by the scheduled arrival of a number of LNG deliveries in the UK. Further out, little support has been provided by Brent but a volatile session is expected due to today’s OPEC meeting in Vienna.||Power prices display small gains this morning with above average temperatures contributing to a surge in cooling demand. Renewable generation is slightly above average at present but a drop is expected next week, offering further support to prompt contracts. Meanwhile the outlook for coal and oil markets remains bullish and could push far-curve contracts higher.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices moved down yesterday but today’s outlook is bullish, with major oil producers expected to agree to an extension on production cuts at today’s OPEC meeting in Vienna.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 43.20ppt and £42.60/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.