|Market Close||Market Close|
|Traders continued to close their short positions yesterday ahead of the expiry of some near-curve contracts which offered support to the gas curve. However, demand levels were low across Europe due to mild weather, with residential demand in the UK dropping 30% below the seasonal norm, limiting the gains at the front of the curve.||Power contracts followed their gas counterparts on Thursday, with further upward pressure provided by stronger coal and oil. Healthy wind generation restricted some of the gains at the front of the curve, with low residential demand also expected today and over the weekend.|
|Market Open||Market Open|
|The UK gas system is oversupplied this morning as Langeled flows have increased, while exports to Europe are lower. This healthy supply picture should help to weigh on contracts throughout the session but an expected rise in demand next week contributed to some gains at the start of the session; the outlook for today is stable-to-bearish.||Power contracts have added to their price this morning with support coming from stronger oil and coal markets. An expected rise in demand next week has pushed the prompt higher, although wind generation should remain healthy, limiting the upward movement. Elsewhere the Pound is starting to recover against the Euro which has helped to cap some of the gains further along the curve.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have risen for the third consecutive session, displaying an increase of almost $2/b since Tuesday. The market is optimistic in regards to an extension of the OPEC deal and compliance with the existing deal remains high.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 43.30ppt and £43.55/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.