2nd October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices followed the overall energy complex and displayed losses on Thursday, with oil, coal and carbon all trading lower. Healthy supply from Norway also resulted in an oversupplied system, with a strong rise in wind generation expected today, reducing demand for gas-fired power. Power contracts were pressured down by weaker gas, with commodity markets also easing down. The Day-Ahead contract fell strongly, with a significant rise in wind levels forecast for today.
Market Open Market Open
The UK gas system is oversupplied this morning as imports remain stable and demand has dropped. Oil, coal and carbon have weakened further, with gas prices following suit and displaying minor decreases across the curve. Power prices are marginally down again this morning as broader energy markets continue to weaken. Wind levels improved as expected but are set to fall over the weekend, helping the prompt add to its price.

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

Brent Summary

Brent 1st-nearby prices have fallen back below $41/b as OPEC production levels in September increased month-on-month. The increase was due to strong exports from Libya and Iran who are exempt from output cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity recorded a loss, closing at 37.89ppt and £46.78/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 - 02-10-2020

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