19th October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices eased down at the end of last week, taking direction from an expected rise in temperatures and renewable availability. Oil displayed a small downward correction, with volatility expected this week in the build up to the US election. A healthier wind generation outlook for this week and an expected uptick in temperatures helped Day-Ahead power decrease strongly on Friday. Commodity markets offered little in the way of support and the far curve displayed minimal movement.
Market Open Market Open
Demand is down and Norwegian flows are up this morning, resulting in a long system, while storage levels remain over capacity. Despite this, gas prices are bullish in anticipation of tighter supply and volatile commodity markets this week. Wind levels have increased today, with another rise expected tomorrow, helping the prompt open at a loss this morning. The rest of the curve has found support from an increase in gas, although milder weather has limited upward movement on the near curve.

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

Brent Summary

Brent 1st-nearby prices struggle to break past the $43/b mark due to technical resistances, with experts claiming prices are unlikely to surpass current levels until after the US election.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 40.21ppt and £47.73/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 - 19-10-2020

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