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

Gas Power
Market Close Market Close
Outages in Norway and the UKCS limited imports into the UK yesterday and tightened the system, despite lower demand levels. Rising global markets also offered support to contracts, with Arctic conditions in the US the main market driver. Movement on US and global markets helped to lift energy markets in the UK and the rest of Europe during Thursday’s session. Meanwhile, a rise in temperatures and improved renewable generation pressured down the prompt and limited gains on the rest of the near curve.
Market Open Market Open
Gas prices display further gains this morning as extreme weather in the US has impacted Europe, with a number of LNG cargoes redirected across the Atlantic. Flows into the UK are also slow to return to normal following outages and LNG send-outs have dropped by 18mcm. However, demand is very low for this time of year and the system is 9mcm long. Power prices follow gas this morning with the majority of contracts displaying an increase. The prompt is the exception to the bullish sentiment, recording a loss on the back of mild weather and strong wind generation levels which are set to continue over the weekend.

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

Brent Summary

Brent Crude has dropped below $64/b as supply is currently outweighing demand due to the drop in production in the US.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 46.47ppt and £56.39/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 - 19-02-2021

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