2nd October 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices initially opened at a discount but rebounded later in the session with the larger gains displayed at the front of the curve. Higher demand pushed the prompt higher which transferred to the front-month contract, while weaker coal limited upward movement on the far-curve. An uptick in carbon prices and a rebound on the gas curve contributed to gains on the power curve during Tuesday’s session. A drop in coal and oil capped bullish movement at the back of the curve but the front of the curve was dictated by higher gas demand and a colder weather outlook.
Market Open Market Open
The UK gas system is oversupplied this morning, while oil and coal markets display further losses. This has restricted bullish movement along the gas curve and the majority of contracts have opened flat. Most power prices display a minor decrease this morning with falling coal and carbon the main market drivers as fundamentals are almost unchanged. Renewables are similar to yesterday’s levels, while the gas system is more comfortable.

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

Brent Summary

Brent 1st-nearby prices are close to their lowest levels in 2019 so far despite weak OPEC production, with oil markets dictated by an overall global economic slowdown.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas recorded a small loss, while commercial electricity increased – closing at 49.30ppt and £52.08/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 - 02-10-2019

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