5th February 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices were bearish yesterday, following weaker commodity markets with only oil displaying a gain. Supply levels were healthy and the system was oversupplied, helped by a drop in demand. Power prices were pressured down by weaker coal, gas and carbon contracts, with milder weather providing further downward pressure at the front of the curve. Meanwhile, wind levels were forecast to drop today, limiting losses on the prompt.
Market Open Market Open
Demand levels are higher this morning due to a drop in wind generation which has seen the system move closer to balance. As a result, near-curve prices have moved higher this morning but a milder weather outlook has limited the gains, with a healthy LNG outlook also a factor. Power prices have ticked higher this morning, with the prompt taking direction from a rise in gas-fired generation as wind levels have more than halved. Further out, a drop in coal and oil has provided resistance and changes are minimal.

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

Brent Summary

Brent 1st-nearby prices climbed higher over the weekend due to a combination of positive trade talks between the US and China, US sanctions on Venezuela and OPEC production cuts. However, Brent has eased down slightly this morning and trades around $62.5/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 54.02ppt and £57.00/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 - 05-02-2019

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