26th March 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Near-curve gas prices inched lower on Friday as temperatures for the week ahead continued to be revised higher. A weakening Asian market also transferred to European prices, while LNG deliveries could ramp up in the coming weeks. Further out, contracts largely held their price with bullish resistance provided by a strengthening oil market. Reduced wind power was expected over the weekend, with low levels also forecast for today, helping Day-Ahead power climb higher on Friday. The rest of the near-curve mirrored movement on the gas curve and decreased, with a milder weather outlook the main market driver. Meanwhile, a rise in oil prices helped towards gains at the back of the curve.
Market Open Market Open
The UK gas system is almost 18mcm long this morning despite demand levels sitting slightly above the seasonal norm. The mild weather outlook has helped the prompt and front-month contracts shed from their price, although changes at the back of the curve are minimal due to bullish oil prices. Day-Ahead power displays a strong loss this morning as wind generation is set to increase tomorrow and temperatures will remain mild. The rest of the near-curve is stable-to-bearish on the back an improved weather outlook, while rising Brent continues to provide upward pressure further out.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent has opened at $70/b this morning, hitting a 2-month high of $71.05/b last night, close to the 3-year highs recorded in January. The potential trade war between the US and China continues to fuel bullish pressure, while further support was provided by the missile attack in Riyadh over the weekend.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 49.13ppt and £49.08/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

energy price graph - 26-03-2018

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.