9th February 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Expectations of cold weather dictated the near gas curve yesterday, with demand levels forecast to climb well above the seasonal norm, while a drop in renewable power also increases reliance on CCGT generation. Cold weather, weaker wind generation and bullish commodities all combined to contribute to a bullish session on the power curve on Monday, with gains displayed from front to back.
Market Open Market Open
Demand levels are 80mcm above the seasonal norm today due to cold weather but healthy LNG send-outs and imports have helped to offset the impact and the system is 25mcm long. This has resulted in losses across the near curve this morning but rising oil continues to limit any decreases further along the curve. An expected drop in wind levels tomorrow has resulted in a small gain on the prompt this morning, while the rest of the near curve has moved down on the back of healthy gas supply.

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

Brent Summary

Brent Crude continues to trade higher due to the global vaccine rollout for COVID-19 which has boosted demand forecasts; Brent currently trades around $60.6/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 48.72ppt and £58.18/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 - 09-02-2021

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