|Gas prices rallied higher on Monday with support provided at the front of the curve by the cold weather outlook, a short system and lower renewable power. Upward movement on coal and oil markets was also supportive, leading to gains further along the curve.
|Power prices were bullish yesterday with support provided by stronger fuel markets, with oil in particular showing strong gains. Cold weather was also forecast for the start of October, offering additional support to the front of the curve.
|The system is slightly oversupplied this morning following a small drop in CCGT demand, as wind levels have improved. Milder weather is also expected tomorrow, weighing on some near-curve prices, however, the far-curve continues to follow rising fuel markets.
|Rising oil prices continue to dictate movement on the power curve this morning, with coal and carbon also showing an increase. The is one of the few contracts to move down as wind generation is set to pick up tomorrow, reducing the UK’s reliance on gas-fired power.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices displayed a strong increase yesterday, reaching $81.48/b, which is the highest price since November 2014. OPEC producing nations are standing firm and will not increase output despite pressure from the US, resulting in the current bullish trend.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas displays a small loss, while commercial electricity increased – closing at 74.89ppt and £69.85/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.