|Market Close||Market Close|
|The morning session was generally stable but small losses were recorded in the afternoon following a drop in oil prices and a warm weather outlook for today. A number of LNG deliveries are also expected to dock in the UK in the coming days and helped to counter the effects of a short system.||Power contracts were slightly bullish yesterday as warm weather led to a rise in cooling demand. However, wind and solar generation was expected to be slightly above average today and this helped to restrict upward movement on the prompt. Meanwhile, a drop in oil and gas prices provided further bearish pressure in the afternoon and some losses were recorded on the far-curve.|
|Market Open||Market Open|
|Warm weather is forecast to continue and will weigh on demand levels over the weekend, resulting in some losses at the front of the gas curve this morning. Demand is currently 40mcm below the seasonal average with improved renewable generation reducing the need for gas-fired power. Oil prices have also moved down with yesterday’s announcement of extended production cuts having little impact.||The near power curve continues to display small gains this morning with an increase in cooling demand the main market driver as temperatures sit above average. Carbon prices have also moved higher, restricting the losses on the far-curve, with a weakening Pound also assisting the bulls.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have fallen by almost $2/b despite the planned extension of production cuts by OPEC members as there was some hope that the deal would be longer than 9 months; Brent currently trades around $51.8/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 42.97ppt and £42.47/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.