|Market Close||Market Close|
|Gas prices closed at a discount despite a bullish opening, with downward movement on the oil market weighing on contracts in the afternoon. Gas demand was well above the seasonal norm which resulted in an undersupplied system and temperatures are not expected to improve drastically next week. Meanwhile, coal prices rallied higher which limited some of the losses on the far-curve.||Falling oil helped to weigh on power contracts in the afternoon, erasing some of the morning’s gains. An increase in coal and a weaker Pound assisted prices in moving higher at the start of the session, with above average consumption the main market driver. The weather forecast for the next fortnight is uncertain but a slight uptick in temperatures is expected next week.|
|Market Open||Market Open|
|Gas demand is expected to decrease next week which has helped towards downward movement across the curve this morning, although a rebound in oil prices has offered some resistance. UK demand is expected to fall by 13% after the Bank Holiday weekend and the supply outlook is comfortable; Norwegian & Russian imports have increased, LNG send-outs are stable and UKCS production has improved.||Power prices display mixed movement this morning with a drop in wind generation offering support to some contracts on the near-curve. A number of nuclear facilities are scheduled to undergo maintenance this summer, while rising oil and coal have also added to the bullish sentiment. However, the prompt has moved down on the back of a milder weather outlook for next week.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices fell to a monthly low of $50.45/b yesterday before rebounding to $51.89/b and settling below $51.7/b this morning. The restart of Libyan oil fields sparked the bearish movement yesterday and the sharp rebound was thought to be technical, helped by positive OPEC comments.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 42.72ppt and £42.14/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.