1st October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed heavy losses yesterday before the start of Q1-21, as traders reset their positions, with winter heating expected to ramp up in the coming months. Contracts decreased across the curve, ignoring a rise in oil, coal and carbon. Power prices traded lower on Wednesday, although the prompt found support from weak wind generation and a colder weather outlook. Weaker gas provided direction to most contracts, despite a rise in commodities.
Market Open Market Open
Front-Month & Front-Quarter contracts have changed over today but overall sentiment remains bearish. Norwegian flows into the UK have increased by 34mcm, resulting in an oversupplied system, while oil has opened lower, contributing to losses. Power contracts have opened slightly higher this morning, following a rise in coal, oil and carbon. Gas has offered some resistance, while an expected improvement in renewable availability tomorrow has helped the prompt shed from its price.

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

Brent Summary

Brent 1st-nearby prices display their largest gain for a fortnight as US oil inventories have dwindled more than anticipated; Brent currently trades around $42.40/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a loss, closing at 38.64ppt and £47.05/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 - 01-10-2020

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