16th October 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
A stronger Pound resulted in increased trading in the UK, leading to some losses across the near gas curve. Weaker coal and oil markets also weighed on prices further out, although a rise in carbon offered some resistance. Power prices were generally stable during Tuesday’s session with support coming from a rise in carbon, while bearish resistance was provided by weaker gas. Wind levels were also expected to increase today which contributed to losses on the prompt.
Market Open Market Open
The UK gas system is oversupplied this morning as Norwegian flows have ramped up as unplanned outages have been resolved. The LNG outlook is also healthy and temperatures are slightly above the seasonal average. Fuel markets provide little direction and gas prices are mostly unchanged at the start of the session. Power contracts have opened stable-to-bearish this morning due to mixed movement on commodity markets. Coal is down, oil and gas are trading flat, while carbon has retraced some of yesterday’s gains.

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

Brent Summary

Brent 1st-nearby prices moved down yesterday but are range bound this morning, currently trading around $58.7/b. No agreement is close in regards to US/ Chinese trade talks, while OPEC has hinted it could impose further production cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher – closing at 48.22ppt and £53.10/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 - 16-10-2019

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