8th December 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Movement along the gas curve was mixed yesterday as a revision in this week’s weather forecast pointed towards milder temperatures, however, weak renewable levels are expected to tighten to the system. Wind generation was expected to improve today, combined with temperatures above the seasonal norm, resulting in a strong loss on the prompt. The rest of the near curve also eased down, while the far curve was pushed higher by rising commodities.
Market Open Market Open
An oversupplied gas system helped to limit gains on the prompt and at the front of the gas curve this morning. An increase in LNG send-outs helped to offset the impact of a rise in demand, while imports via the BBL and IUK pipelines also remained strong. Weak wind generation continues to offer support to the prompt; wind levels picked up slightly today but are expected to be very low again tomorrow. However, milder temperatures have provided some bearish pressure, while fuel markets have eased down temporarily.

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

Brent Summary

Brent Crude has dropped back below $49/b as OPEC production cuts had only a brief impact on trading floors, with no fresh news to support the market.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a loss, closing at 38.61ppt and £48.04/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 - 08-12-2020

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