6th November 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices continued to strengthen yesterday with support provided by an increase on overall energy markets, with oil & coal both moving higher. A colder weather outlook also added to the bullish sentiment, with an increased reliance on gas-fired power helping the prompt close at a premium. Power prices traded higher on Tuesday, taking direction from a rise in gas, biomass feedstocks and coal. An expected drop in temperatures also added to the gains on the near-curve, with a weak renewable generation forecast for today helping the prompt record a strong gain.
Market Open Market Open
Gas contracts have eased down this morning with improved flows from Norway contributing to a long system; increased gas transit from Russia has also added to oversupply on the continent. This healthy supply has offset the effects of a drop in temperatures, while bullish sentiment on the oil market has calmed. Power prices have been pressured down by weakening on the gas curve, with feedstock and carbon prices also opening lower. Meanwhile, temperatures have been revised slightly higher and should be around the seasonal norm over the next fortnight, reducing demand.

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

Brent Summary

Brent 1st-nearby prices have stabilised this morning and currently trade just below $63/b. Markets continue to focus on trade talks between China and the US but healthy US stocks and potential OPEC production cuts offer resistance.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity recorded a small gain – closing at 45.35ppt and £50.60/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 - 06-11-2019

If you would like to learn more about how Apollo Energy can help your business find the best deal on its gas and energy contracts then feel free to get in touch by calling us on 01257 239500 or using the form on our contact form.