19th January 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Milder temperatures were forecast for today which was expected to reduce demand, helping towards losses at the front of the curve. LNG send-outs remained low but flows via the BBL and IUK pipelines have been healthy and consistent. Power prices on the spot were pressured down by an expected rise in temperatures in the UK for the remainder of January. Commodity markets were also stable-to-bearish on Monday, resulting in some downward movement at the back of the curve.
Market Open Market Open
Gas prices opened higher this morning and continued to increase as the session progressed. Contracts have been dictated by weak demand forecasts for fuel due to the global pandemic, ignoring healthy supply fundamentals, with demand down and flows generally stable. Power prices are also bullish this morning and have been pushed higher by the impact of global lockdowns. Wind generation is reduced slightly, with another drop forecast for tomorrow, offering support to the prompt.

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

Brent Summary

Brent Crude has dropped below $55/b as the International Energy Agency as published another downward revision in demand forecasts, with further lockdowns to be imposed in Europe and Asia.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 46.09ppt and £55.05/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 - 19-01-2021

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