18th September 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Oil was the only commodity to move higher yesterday, with gas following other markets and trading down. Oil found support from countries reaffirming their commitment to OPEC production cuts, while carbon failed to break the €30 barrier. Power prices decreased strongly yesterday, following gas and carbon markets. Demand for gas-fired power was expected today which weighed on the prompt, with a colder weather outlook also a factor.
Market Open Market Open
The UK gas system is oversupplied this morning despite tight supply, helping to weigh on the near curve. Coal, carbon and oil all traded higher but this failed to impact the gas curve. Most commodities are trading higher this morning but prompt power contracts have followed gas and moved down. Day-Ahead displays a decrease as warm weather and low renewables are forecast for the weekend, however, a drop in temperatures is expected as we head into October.

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

Brent Summary

Brent 1st-nearby prices have increased as OPEC have warned non-compliant members to reduce production by December to offset their additional output in recent months.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity recorded a gain, closing at 35.85ppt and £48.86/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 - 18-09-2020

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