3rd December 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices decreased yesterday due to an expected drop in demand over the coming days, combined with healthy supply levels. Temperatures are expected to improve as the week goes on which will weigh on residential demand. Further downward pressure was also provided by a drop in coal & carbon. Spot power prices climbed higher during Monday’s session due to cold weather and weaker renewables. Meanwhile, contracts further along the curve eased down, with pressure coming from a drop in coal, gas, carbon and feedstocks.
Market Open Market Open
The UK gas system is 17mcm long this morning as flows have increased from all sources and demand is down. Gas prices displayed further losses this morning, particularly on the near-curve, while weaker coal and carbon have provided bearish pressure further out. Wind levels are forecast to rise in the coming days, with temperatures also set to turn slightly milder, reducing both heating demand and the need for gas-fired power. As a result, power prices have opened at a loss, helped by weaker gas contracts.

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

Brent Summary

Brent 1st-nearby prices have recovered slightly to trade just below $61/b, with expected OPEC production cuts offsetting the effects of global oversupply.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 42.27ppt and £47.60/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 - 03-12-2019

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.