|Near-curve gas prices moved higher on Friday as two unplanned outages reduced UKCS production, while weaker Brent helped to weigh on contracts on the far-curve. Demand levels across Europe are also set to rise over the coming weeks which offered further support to prices at the front of the curve.
|Movement on the power market varied at the end of last week as the bulls took control of the near curve due to an expected rise in demand over the coming weeks. Meanwhile, falling coal and oil helped to pressure down some contracts on the far-curve.
|Cold temperatures over the weekend resulted in an increase in demand levels, with UK demand expected to be 30% above the seasonal norm today. Demand is expected to increase further tomorrow while Norwegian flows are reduced due to an outage at the Heimdal platform. Prompt prices have increased on the back of this tighter supply picture but weakening oil has helped to limit the upward movement further out.
|Day-Ahead power and front month contracts have strengthened this morning due to higher demand levels and a cold weather forecast for December. The rest of the curve is generally bearish and continues to track movement on the French market, with falling oil also a factor.
Brent 1st-nearby prices display a significant drop this morning due to pessimism surrounding the OPEC freeze deal with producers set to meet this week; Brent currently trades at $46.77/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 44.73ppt and £44.83/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
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