|Rising oil prices and a stronger European market helped to support gas contracts across the curve on Tuesday. Coal prices also increased, while the outage at Kollsnes restricted gas flows into the UK.
|An expected rise in wind levels helped the prompt shed from its price during yesterday’s session although the rest of the curve was pushed higher by stronger fuel prices. An improved nuclear availability outlook and the return of a gas-fired power station offered some bearish pressure but failed to result in losses.
|Oil prices continue to rise this morning and the gains have transferred to the gas curve. Meanwhile, the outage at the Kollsnes processing facility has been extended and the UK gas system is 16mcm short as flows via the Langeled pipeline remain low. A drop in LNG send-outs has also offset the impact of weaker gas-fired power demand.
|Power contracts have opened at a premium this morning with direction coming from the gas, coal and oil markets. Meanwhile, wind generation has improved from yesterday’s levels and is expected to remain healthy until mid-next week, although the solar forecast is unclear.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display further gains and have climbed above $50.5/b this morning with upward pressure coming from the promise of reduced exports from Saudi Arabia and an expected decline in US inventories.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 42.09ppt and £42.98/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.