15th January 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
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An upward revision in temperatures for the 14-day weather forecast, helped near curve gas prices shed from their price yesterday, while movement further out was stable-to-bearish. Power contracts followed gas once again and traded down due to expectations of lower demand, helped by mild weather and improved renewable generation. Coal also eased down, while oil markets showed little movement.
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Weather models have been revised again, with mild weather expected over the coming weeks, while an uptick in wind generation will also reduce CCGT demand. This weaker demand outlook has helped to pressure down the near curve but the system remains under pressure at the time of writing. A rise in temperatures and wind levels is expected next week which has resulted in a strong loss on the prompt, with the downward movement filtering through to the rest of the near curve. Meanwhile, commodity markets are generally stable and have provided little support to the rest of the curve.

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

Brent Summary

Brent Crude prices have climbed above $56.4/b as the strong bullish sentiment in previous sessions seems to have subsided a little. OPEC+ production cuts, global lockdowns and the vaccine rollout remain the key talking points in terms of oil.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved down, closing at 46.18ppt and £54.53/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 - 15-01-2021

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