17th January 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas contracts traded lower yesterday, tracking movement on the coal market, with both fuels competing to make up for a drop in wind generation. Temperatures are also expected to turn milder after the weekend, further weighing on prices. Power prices displayed losses on Thursday, with bearish pressure provided by falling gas, coal and feedstocks. Resistance was provided by a rise in oil and carbon, while the prompt was pushed higher by an expected drop in wind production.
Market Open Market Open
Wind levels have dropped again which has led to another rise in gas-fired power, resulting in an undersupplied system. Despite this tighter demand picture, prices have failed to find much support from it and near-curve prices are mostly flat, while the far-curve has been pressured down by weaker coal and carbon. Power prices are stable-to-bearish this morning as carbon and feedstock markets are almost unchanged. A milder weather outlook has also offset any bullish factors, while wind generation is expected to hold current levels over the weekend.

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

Brent Summary

Brent 1st-nearby prices have moved higher but remain between $64-$65/b as markets have calmed following events in Iraq, while overall fundamentals are stable.

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 34.17ppt and £42.50/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 - 17-01-2020

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