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

Gas Power
Market Close Market Close
A long system and an expected rise in temperatures next week helped gas contracts shed from their price on Wednesday, although bullish oil and fuel markets limited losses further along the curve. Power followed gas and traded lower thanks to healthy supply levels which offset the impact of cold weather. The prompt moved higher due to weaker wind generation, while a rise in coal and carbon offered some support further out.
Market Open Market Open
The supply/ demand outlook for the remainder of February is forecast to be healthy, while the system remains long due to strong flows and LNG send-outs. Near curve prices have recorded further losses, with the bearish movement filtering through to longer dated contracts. An expected rise in wind generation tomorrow and the forecast for milder weather has resulted in downward movement on the prompt and near curve at the start of the session. Commodity markets are also stable-to-bearish this morning, resulting in some losses further along the curve.

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

Brent Summary

Brent Crude recorded additional gains yesterday but is somewhat stable this morning. There are some concerns that the recent recovery could tempt producers to increase output to take advantage of higher prices.

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 47.02ppt and £57.50/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 - 11-02-2021

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