11th November 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices eased down on Tuesday thanks to a comfortable supply/ demand outlook, with improved renewable generation expected to reduce CCGT demand. Movement at the back of the curve was more stable due to an increase in fuel and a stronger Pound. Wind levels were expected to increase significantly today which resulted in a strong loss on the prompt yesterday, while temperatures should sit above the seasonal norm until the weekend, at least. Further out, prices were dictated by increases on oil markets and a late rebound in coal.
Market Open Market Open
An outage at the Oseberg gas field in the North Sea has taken 6mcm offline this morning and offered support to UK gas prices, the outage is expected to last for 2-3 days. Upward movement has been limited by milder weather and a drop in CCGT demand, while bullish oil has provided support to the far curve. Wind generation is expected to hold similar levels tomorrow, while temperatures will remain warm, helping the prompt shed from its price. However, the rest of the curve has moved higher due to tighter gas supply and rising commodities.

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

Brent Summary

Brent 1st-nearby prices have climbed above $43.6/b as expectations of a Coronavirus vaccine rollout have boosted oil markets; a successful vaccine would curb fears of a second wave and greatly improve demand forecasts.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 38.53ppt and £47.29/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 - 11-11-2020

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