20th January 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
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Despite a much healthier supply/ demand outlook, gas prices were slightly bullish yesterday as UK and European markets were dictated by lockdowns which led to a downward revision in fuel demand forecasts. Power contracts displayed gains on Tuesday, with weak demand for fuel affecting energy markets across Europe and the world. Similar wind levels were forecast for today, while temperatures are expected to remain above the seasonal average in the coming days.
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Gas prices have increased this morning, following a rise in oil which has found support from the announcement of a financial stimulus package in the US. However, the system is comfortable as demand is 25mcm below the seasonal norm. Power prices have been pushed higher by an overall rise on energy markets, sparked by economic optimism in the US. Wind generation is stable, while milder weather has reduced demand, providing some resistance at the front of the curve.

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

Brent Summary

Brent Crude nears $56/b again as news of a financial stimulus package in the US ahead of Joe Biden officially becoming President; this has also had a positive effect on demand forecasts.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 48.33ppt and £56.63/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 - 20-01-2021

If you would like to learn more about how Apollo Energy can help your business find the best deal on its gas and energy contracts then feel free to get in touch by calling us on 01257 239500 or using the form on our contact form.