|Market Close||Market Close|
|The expected drop in temperatures across Europe this week resulted in strong upward movement across the near gas curve on Friday. The prompt recorded a strong gain due to the higher demand outlook with healthy renewables having little impact. Meanwhile, a drop in coal prices helped far-curve prices stabilise despite a jump in Brent.||Cold weather dictated movement along the near power curve with most contracts closing at a strong premium. Improved wind and solar generation was largely ignored and the expected rise in heating demand this week was the main market driver. Weaker coal limited bullish movement on the far-curve but this was offset by rising oil prices.|
|Market Open||Market Open|
|The system has opened long this morning despite strong demand levels, with cold weather expected to keep levels high throughout the week. However, temperatures have been revised higher for the start of March and the supply outlook is healthy, resulting in strong losses this morning. Weakening coal continues to apply bearish pressure at the back of the curve but a rebound on the oil market has restricted the losses.||Milder weather is now expected at the start of next week, helping to erase Friday’s gains with most contracts falling in line with their gas counterparts. Renewable power remains healthy, while coal powered generation has increased to meet demand following a drop in prices. Some bearish movement can also be seen at the back of the curve despite stronger Brent.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have moved higher with Thursday’s EIA report providing on-going support and issues at a Libyan oil terminal also a factor; Brent currently trades at $67/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 46.70ppt and £46.45/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.