11th January 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Sentiment on the gas curve was little changed throughout the week, with the front of the curve influenced by cold weather and reduced LNG send-outs. Meanwhile, oil and carbon markets continued their bullish trend, supporting the far curve. Power followed gas on Friday and ended the week higher, although an expected improvement in wind generation over the weekend and today helped to pressure down the prompt.
Market Open Market Open
UK gas prices have opened with significant increases across the curve this morning, with expected supply tightness this month on the back of prolonged cold weather. Further out, prices continue to take direction from rising oil markets. Wind generation has increased today, easing reliance on gas, however, these strong levels are expected to be short lived and cold temperatures are set to continue, resulting in a significant gain on the prompt. Further out, the majority of contracts have followed a bullish gas market.

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

Brent Summary

Brent Crude has climbed above $55/b as the impact of Saudi Arabia’s voluntary reduction in output continues to support the market, despite global lockdowns.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas recorded a small increase, while commercial electricity moved down, closing at 48.51ppt and £56.68/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 - 11-01-2021

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