|Market Close||Market Close|
|Gas prices moved down yesterday afternoon despite an expected drop in temperatures and wind generation at the start of February. Improved Norwegian supply helped to weigh on the near-curve, while comfortable renewable power reduced CCGT demand. Contracts at the back of the curve also shed from their price and were dictated by losses on the coal and oil markets.||Demand was below the seasonal norm yesterday and stronger wind generation reduced the need for gas-fired power, applying bearish pressure on the prompt, with the rest of the near-curve following suit. Comfortable gas supply was also a factor behind the losses, with a drop in coal and oil prices pressuring down the far-curve.|
|Market Open||Market Open|
|Temperatures are expected to fall below the seasonal norm next week, although this colder stint could be rather short-lived. This has limited some of the losses displayed at the front of the curve this morning, while a comfortable supply outlook is forecast for tomorrow, helping the prompt move down. IUK and BBL flows are slightly down but weaker demand has resulted in a balanced system.||Day-Ahead power has decreased this morning as wind levels are set to improve tomorrow and temperatures will remain mild. The rest of the curve also displays losses despite next week’s cold weather outlook, with bearish movement on coal and oil markets transferring to contracts on the far-curve.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices recorded their biggest loss since mid-December, falling by over $1/b to trade below $69.5/b. Overall sentiment still appears bullish, helped by a weakening Pound but traders now look towards tonight’s API forecast which is expected to show a rise in US stocks.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased further – closing at 45.98ppt and £45.91/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.