|Market Close||Market Close|
|Gas prices climbed higher on Friday with colder temperatures expected over the weekend and the start of this week. Low wind levels resulted in a sharp rise in CCGT demand, tightening the system and providing additional support. Further out, contracts were pushed higher by a rise in coal prices, with little resistance provided by oil markets.||Day-Ahead power recorded a strong loss on Friday as wind levels were expected to rise considerably today, reducing demand for gas-fired power. The rest of the near-curve was pushed higher by a cooler weather outlook, while prices at the back of the curve found support from rising coal and a weaker Pound.|
|Market Open||Market Open|
|The UK gas system has opened 21.7mcm short this morning as colder temperatures have lifted residential demand to 35mcm above the seasonal norm. Improved wind generation has reduced CCGT demand but this has failed to cap gains on the near-curve. Oil prices have decreased but far-curve contracts have been pushed higher by other fuel markets and a further weakening of the Pound.||Wind levels have increased significantly from Friday’s levels and little change is expected tomorrow, resulting in a small loss on the prompt. The rest of the near-curve is bullish with direction coming from colder weather and tighter gas supply. Meanwhile, sentiment at the back of the curve is unchanged with stronger coal and a weak Pound the main market drivers.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have decreased this morning following a stable end to last week. An increase in oil drilling in the US continues to undermine OPEC production cuts; this is the main factor behind this morning’s losses following the release of the latest Bakker Hughes rig count.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 51.63ppt and £51.31/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.