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

Gas Power
Market Close Market Close
Despite an oversupplied system, gas prices traded higher due to an expected rise in demand as cold temperatures hit the UK, in addition to a low renewable generation outlook for today. Further out, a rise in oil was the main focus. A weak wind generation outlook for today helped the Day-Ahead contract add to its price on Wednesday, with winter weather providing support to the rest of the spot. Rising oil and gas were the main drivers of prices further along the curve.
Market Open Market Open
Near curve gas prices have climbed higher this morning as gas demand is 8mcm above the seasonal norm, with colder weather expected to continue. CCGT demand has also increased due to a drop in renewables, while the far curve continues to take direction from a bullish turn on oil markets. Wind generation is expected to pick up sharply tomorrow which has helped the prompt record a strong loss this morning. Colder temperatures continue to support the rest of the near curve, while movement further out is dictated by a rise in oil and other commodities.

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

Brent Summary

Brent 1st-nearby prices continue on an upward trend thanks to expectations of an extension to OPEC production cuts, while the US election provides added volatility.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 38.69ppt and £45.93/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 prices - 05-11-2020

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