|Market Close||Market Close|
|Gas prices were slightly bullish yesterday with marginal gains displayed on fuel markets and a slight drop in supply offering support to the curve. UKCS flows were restricted by industrial action taking place at gas fields, while CCGT demand remained high due to weak wind generation.||Power prices climbed higher on Tuesday as overall fundamentals were unchanged and fuel markets strengthened. Wind levels were very weak, with little improvement expected today, while hot weather continued to lift cooling demand. Meanwhile, the carbon market was the exception to the bullish sentiment and helped to limit some of the upward movement.|
|Market Open||Market Open|
|The UK gas system is balanced this morning following a drop in exports via the IUK pipeline, although supply coming in from the UKCS remain constrained. This limited supply picture has helped towards gains at the front of the curve, while the far-curve has been pushed higher by a rebound on coal and oil markets.||Coal, gas and oil markets continue to strengthen this morning, helping towards price increases across the power curve. The larger gains are displayed at the front of the curve as renewable levels remain very low. This afternoon’s outlook relies heavily on the latest US oil figures which will impact all fuel markets.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have increased by $1/b, with support provided by an expected drop in crude stocks in the US, in addition to an announcement regarding plans to encourage growth in China. Traders now await feedback from talks between the US and EU in regards to trade deals, with the latest US inventory report also scheduled to be released.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 58.30ppt and £58.06/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.