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

Gas Power
Market Close Market Close
Gas prices increased strongly yesterday afternoon, in particular the Q1-21 contract which found support from a tighter supply outlook. Contracts further along the curve were also pushed higher by stronger coal and oil markets. Power prices followed gas in the afternoon and moved higher, with further support provided by rising coal, oil and carbon. The prompt recorded a small loss as the supply/ demand picture was expected to be largely unchanged today.
Market Open Market Open
The system is 28mcm long this morning as temperatures remain above the seasonal norm and LNG send-outs are high. The comfortable system has helped to limit upward movement at the front of the curve but longer dated contracts take direction from bullish moves by carbon and oil. The prompt displays a strong loss this morning as mild temperatures are expected over the weekend, combined with improved renewable generation. The rest of the curve is mostly supportive, dictated by recovering commodities.

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

Brent Summary

Brent Crude has climbed above $50/b for the first time since March, with market optimism provided by the COVID-19 vaccine rollout which is expected to result in improved demand forecasts for 2021.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 40.62ppt and £49.58/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 - 11-12-2020

If you would like to learn more about how Apollo Energy can help your business find the best deal on its gas and energy contracts then feel free to get in touch by calling us on 01257 239500 or using the form on our contact form.