28th March 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Weakening commodity markets and a warm weather outlook for the rest of this week contributed to losses on the gas curve yesterday. Coal and emission contracts decreased but a late rebound in Brent helped to limit some of the downward movement on the far-curve. An outage at the South Hook terminal also reduced UKCS output and offered some support to the prompt. A low demand forecast for this week helped to pressure down prompt power contracts on Monday morning, with further bearish sentiment provided by losses on the coal market. However, an expected drop in renewable generation today offered some support to prompt, while an increase in Brent helped to keep losses on the far-curve to a minimum.
Market Open Market Open
The UK gas system has opened short this morning on the back of several supply issues; Langeled flows have dropped from yesterday’s levels, storage withdrawals are lower and UKCS production is still limited due to outages. However, the on-going outage at Bacton Seal is expected to be resolved today, while temperatures for next week have been revised higher, capping the gains at the front of the curve. Day-Ahead power has shed from its price this morning as a warm weather outlook continues to apply bearish pressure, while coal contracts have also weakened. The rest of the curve displays gains with direction coming from a rising gas market and a rebound in oil.

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

Brent Summary

Brent 1st-nearby prices climbed to just below $51/b, with a weaker US Dollar providing some support this morning. Rising US stocks continue to fuel bearish pressure, while there are some doubts in regards to the latest OPEC deal.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity posted a loss – closing at 41.64ppt and £42.32/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 - 28-03-2017

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.