5th February 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices were slightly supportive yesterday, with bullish pressure coming from a rebound on commodity markets. However, any upward movement at the front of the curve was limited by healthy supply and a drop in demand. Power prices inched higher on Tuesday, following a rise in feedstocks, gas, coal and carbon. Temperatures fell back towards the seasonal norm but should turn milder next week, while wind levels were forecast to plummet today, helping the prompt record a strong gain.
Market Open Market Open
Most gas prices have eased down this morning, shaving off some of yesterday’s gains. Demand levels have increased strongly due to a significant drop in wind generation, while temperatures have also turned slightly colder, helping to push the prompt higher. Power prices have followed gas and display minor decreases this morning, with a decrease in coal and carbon also a contributing factor. Wind levels have dropped as expected and are set to remain low tomorrow, ensuring the Day-Ahead contract strengthened once again.

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

Brent Summary

Brent 1st-nearby prices remain weak due to the on-going situation in China, although traders are awaiting news from OPEC in regards to further production cuts which will provide some rare support to the market.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 30.25ppt and £38.70/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 - 05-02-2020

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