5th May 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices strengthened during Tuesday’s session as high demand and reduced LNG send-outs resulted in an undersupplied system. Further out, carbon allowance contracts continued to rally higher and offered additional support. Power followed the gas curve closely yesterday, supported by colder weather, reduced supply and bullish commodities. Renewable levels were also expected to decline gradually for the remainder of the week.
Market Open Market Open
Temperatures are expected to remain below the seasonal norm for the remainder of the week before warming up after the weekend. This has helped to weigh on the front of the gas curve, while the far curve takes direction from bullish oil and carbon markets. Power prices are quite mixed this morning, with the prompt displaying a strong gain on the back of an expected drop in wind generation tomorrow. The rest of the near curve has eased down slightly as milder temperatures are expected next week, while commodities continue to support prices further out.

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

Brent Summary

Brent Crude nears $69/b as the latest US inventory reports showed that crude stocks are lower than expected.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 56.72ppt and £66.95/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 - 05-05-2021

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