27th June 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed losses across the curve on Tuesday as the system was oversupplied due to low demand and improved flows from Norway. The warm weather outlook is set to continue into the weekend, which further weighed on the prompt. However, downward movement at the back of the curve was restricted by a bullish outlook for coal and oil. Power prices inched down yesterday, with weaker gas prices weighing on the near-curve. Low wind generation offered some resistance but solar power is healthy. Meanwhile, a rebound on the coal market capped losses at the back of the curve.
Market Open Market Open
The system has opened slightly short this morning as flows from Norway have decreased due to unplanned outages. This has helped gas contracts to rally higher, with the prompt in particular displaying a strong gain. The oil market also continues to provide support to the far-curve, despite a small downward correction for Brent overnight. Gains can be seen across the power curve this morning with rising coal and gas prices the main market driver. A rise in CCGT demand has provided additional bullish sentiment at the front of the curve, while a strong outlook for oil prices has contributed to price increases further out.

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

Brent Summary

Brent 1st-nearby prices trade around $76/b this morning as oil markets have eased down following a strong rebound on Monday. However, the overall outlook remains bullish due to supply disruptions in Canada and Libya, in addition to Trump’s comments which asked other nations to boycott Iranian exports.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 56.61ppt and £55.67/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 - 27-06-2018

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.