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

Gas Power
Market Close Market Close
Gas prices moved down on Friday, with some contracts falling by around 10%. Temperatures were above the seasonal norm and supply levels were expected to improve this week, helping to weigh on the near-curve, while the far-curve was pressured down by weaker carbon and power prices. Power prices followed their gas counterparts and moved down on Friday, with additional bearish pressure provided by weaker carbon. However, an expected drop in wind generation helped the prompt climb higher.
Market Open Market Open
The UK gas system is 30mcm short this morning due to increased demand which has halted bearish movement on the gas-curve, with most prices showing little change from Friday. A rise in coal, carbon and oil markets has also offered some support to the far-curve. The majority of power prices display small gains this morning, although the prompt has increased strongly due to a weaker renewable generation outlook. Milder temperatures have helped to limit upward movement on the near-curve, while the far-curve has followed stronger commodity markets.

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

Brent Summary

Brent 1st-nearby prices display another increase today due to optimism in terms of the US and China striking a new trade deal; Brent currently trade around $65.2/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 38.13ppt and £44.65/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 - 16-12-2019

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