2nd February 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Near curve gas prices weakened yesterday as a busy period of LNG deliveries is scheduled for the next couple of weeks. Cold weather offered some resistance but wind levels were expected to increase significantly today, resulting in a loss on the prompt, while oil markets also strengthened. Wind levels were expected to ramp up today which helped the prompt shed from its price, while losses further along the curve were limited by high demand. Movement towards the back of the curve was also slightly bullish due to a rise in oil and coal.
Market Open Market Open
Gas prices have opened slightly higher this morning as cold weather has lifted demand levels. Any gains have been limited by improved wind generation and an expected increase in LNG send-outs, while a rise in oil offers some support further out. Similar wind levels are forecast for tomorrow, weighing on the prompt this morning, although the rest of the curve has followed gas and displays small increases. Meanwhile, a rebound on oil markets has helped to push contracts higher on the far curve.

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

Brent Summary

Brent Crude has increased this morning as production cuts in Saudi Arabia have come in to effect this month; Brent currently trades above $56.3/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 46.52ppt and £55.03/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

energy price graph - 02-02-2021

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