9th December 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Movement along the gas curve was subdued on Tuesday with an oversupplied system limiting any gains. Demand was down and supply was very healthy, although an expected rise in CCGT demand today offered support to the prompt. A weak renewable power outlook for today helped the prompt record a strong gain yesterday, while upward movement on the rest of the near curve was restricted by a comfortable gas system. Further out, contracts were generally stable with minimal direction offered by commodities.
Market Open Market Open
Gas prices display marginal gains this morning despite an oversupplied system and strong LNG send-outs. Demand has dropped by around 15mcm due to a rise in temperatures, with milder weather expected throughout December. However, prices have found support from scheduled maintenance at 4 facilities in Norway tomorrow, combined with rising fuel markets. Wind levels continue to fluctuate this week with improved generation expected tomorrow, which has pressured down the prompt with the help of mild weather. Further out, a rise in coal, oil and carbon has restricted the downward movement and losses are insignificant.

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

Brent Summary

Brent crude displays a small gain as markets wait to see the impact of the Coronavirus vaccine and an economic recovery; Brent trades around $48.9/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity recorded a loss, closing at 38.42ppt and £47.60/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 - 09-12-2020

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