3rd December 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Near curve gas prices moved higher once again on the back of the tighter demand outlook, although a long system ensured gains were not significant. Further out, contracts found some support from an increase in oil and carbon. High gas-fired power demand and a drop in temperatures supported near curve prices during Wednesday’s session. However, movement further out was more subdued as coal markets dipped and oil only showed a minor increase.
Market Open Market Open
Gas prices have opened lower this morning, with the larger losses displayed at the front of the curve. Demand levels sit above the seasonal norm but the system remains oversupplied, while the wider energy complex has moved up, offering resistance further along the curve. An improved renewable generation forecast for tomorrow has helped the prompt shed from its price this morning, with losses filtering through to the rest of the near curve. Sentiment further out is slightly mixed with support provided by a rise in carbon EUA contracts and a rebound in coal & oil.

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

Brent Summary

Oil markets have been buoyed by the announcement that the UK will roll out the Coronavirus vaccine to the public, sparking optimism that an economic recovery is in sight.

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 38.48ppt and £47.93/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 - 03-12-2020

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