4th December 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices continued to move down on Tuesday due to an oversupplied system and a milder weather outlook. Commodity markets also weakened which applied additional bearish pressure to the back of the curve. Power prices tracked movement on the gas curve and displayed losses yesterday, with a drop in coal, carbon and feedstocks adding to the bearish sentiment. The expectations of milder and windier weather also helped to weigh on the prompt.
Market Open Market Open
Spot gas prices display further losses this morning as the system is 30mcm long due to excess supply, helped by a rise in LNG send-outs. The far-curve has also opened lower with direction provided by a drop in coal, power and carbon. Power prices have recorded additional losses this morning, with a significant rise in wind generation forecast for the coming days which has resulted in a heavy decrease on the prompt. Commodities also trade lower and moderate temperatures are expected.

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

Brent Summary

Brent 1st-nearby prices are marginally up this morning but are little changed from yesterday’s open. Markets have found support from suggestions in Russia that more substantial production cuts could be imposed, while recent data also shows a drop in US crude stocks.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 41.65ppt and £47.13/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 - 04-12-2019

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