|Gas prices continued to ease down yesterday with the help of an oversupplied system and a milder weather outlook. The system was long throughout the session despite planned maintenance at Russian and Norwegian facilities which reduced imports. Weakening carbon and oil markets also helped to weigh on the far-curve.
|Power prices moved down on Wednesday with sentiment coming from a weaker European energy complex, with gas, carbon and coal all posting losses. However, downward movement on the prompt was slightly limited by an expected drop in renewable generation today.
|The system remains long this morning which has helped towards further losses on the near gas curve. The short term weather forecast remains warm and healthier wind levels are expected, reducing residential and CCGT demand. Further out, coal and carbon markets are bearish, pressuring down some contracts.
|Falling coal, carbon and gas continue to apply bearish pressure to the power curve this morning. A warmer and slightly windier weather forecast is also a factor behind a weaker prompt, although a bullish outlook for oil has capped losses at the back of the curve.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent is stable this morning, rebounding from a small loss yesterday to continue trading around $81.4/b; an unwillingness to increase production by OPEC is the main factor behind the current bullish trend.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas displays a small loss, while commercial electricity decreased – closing at 71.48ppt and £67.15/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.