|Market Close||Market Close|
|Gas prices moved higher on Tuesday with support coming from rising coal and power markets, with an expected drop in temperatures next week also a factor. Meanwhile, Langeled flows were lower due to an unplanned outage at the Nyhamna processing plant which led to a tighter UK gas system, despite weak demand.||Coal prices rallied higher yesterday which helped power contracts to close at a premium. Elsewhere, renewable generation is set to remain rather low over the next few days, compared to last week’s levels but mild weather should result in comfortable demand, limiting the gains on the near-curve.|
|Market Open||Market Open|
|Norwegian flows are higher this morning as yesterday’s outage was resolved and the UK gas system is oversupplied as a result, this, in turn has led to losses on the near gas curve. However, the LNG outlook is weaker with only two deliveries scheduled to arrive in the UK in June as the IUK interconnector will be offline for maintenance work. Further out, coal and oil markets are generally stable and have offered little support to prices.||Power contracts display mixed changes this morning due to contrasting fundamentals. Wind generation is set to remain low this week but the forecast for solar power is uncertain, though both are expected to rise next week. Coal prices have stabilised today, while oil prices display a small decrease, with both having little effect on the far-curve.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices continue to decrease this morning as a surge in Libyan and US output has offset the effects of last week’s OPEC and Non-OPEC extension deal; Brent currently trades just above $51.4/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher – closing at 43.46ppt and £43.03/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.