14th October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices were largely bullish on Tuesday, taking direction from a rebound in oil, a drop in LNG send-outs and a colder weather outlook. A lack of progress in terms of Brexit negotiations also impacted UK markets and the value of the Pound. Colder temperatures limited downward movement at the front of the power curve yesterday, although the prompt recorded a small loss as similar renewable generation levels were forecast for today. Further out, contracts were pushed higher by a rise in gas & oil.
Market Open Market Open
The prompt and near curve gas contracts have opened higher as temperatures are expected to remain 3mcm below the seasonal norm today, while weaker wind generation levels tomorrow will lift demand. Contracts along the power curve display further gains this morning, mirroring their gas counterparts. Coal has also opened higher, while oil remains supportive. Wind generation levels are set to fall tomorrow, while temperatures will remain cold, resulting in a strong gain on the prompt.

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

Brent Summary

Brent 1st-nearby prices increased yesterday but financial strategists revealed that prices are unlikely to break above $43/b until after the US election. Yesterday’s bullish turn was largely on the back of an unexpected rise in Chinese Crude Oil imports.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 39.03ppt and £47.33/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 - 14-10-2020

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.