1st March 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
A tighter gas system was forecast for the start of this week due to low wind generation and cooler weather. However, healthy imports kept the system oversupplied during the session, while a drop in oil offered some bearish resistance further along the curve. The drop in temperatures and wind levels this week helped power contracts add to their price at the front of the curve, while longer dated contracts were more resilient due to a slight decrease on commodity markets.
Market Open Market Open
Near curve gas prices trade higher this morning due to a colder weather forecast and weak wind generation which has led to a sharp rise in demand. This rise in demand has resulted in an undersupplied system, with additional storage withdrawals required to make up the shortfall. Wind generation has dropped to around 2GW today, resulting in a strong reliance on gas-fired power, while the use of coal has also increased. This has resulted in gains across the near curve, with weak renewable levels also forecast for tomorrow, supporting the prompt.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent Crude moved down over the weekend but has opened higher this morning as a Coronavirus relief package was agreed in the US which will stimulate the economy.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved higher, closing at 44.54ppt and £55.79/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

energy price graph - 01-03-2021

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.