|Gas prices moved higher yesterday with a short system supporting contracts on the near-curve. An unplanned outage in Norway restricted imports into the UK and UKCS production fell, with weak wind levels contributing to an increase in gas-fired power generation. Further out, a rebound in oil prices helped contracts add to their price.
|Power contracts increased on Monday with the exception of the prompt which corrected downwards following strong gains on Friday. A healthier wind generation outlook also weighed on the prompt, although solar power will be limited. The rest of the curve was dictated by stronger gas and fuel prices.
|Gas prices remain slightly bullish this morning as Norwegian flows remain weak, although the system is closer to balance compared to yesterday. The return of the IUK interconnector will also lead to a rise in exports, further impacting the system. However, an expected rise in temperatures and stronger wind generation should weigh on demand later in the week.
|Power contracts display mixed changes, with increases on the coal, gas and oil markets offering some support. Cooler temperatures have weighed on consumption levels but warm weather is set to return next week which should increase cooling demand.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices remain above $46/b and have displayed a bullish trend over the previous three sessions. Fundamentals are largely unchanged as high US drilling figures dictate the market, while OPEC output is stable.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas increased slightly, while commercial electricity moved down – closing at 41.90ppt and £42.85/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.