22nd January 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas contracts initially opened lower yesterday but strengthened as the session progressed due to a higher demand outlook. The system was undersupplied throughout the session, as demand was up and flows were unchanged. Power prices eased down on Thursday morning, following movement on the gas market. However, most contracts saw a rebound in the afternoon as colder weather and reduced renewables are expected.
Market Open Market Open
Gas prices are up this morning as the UK is set to see another cold spell next week, with temperatures dropping below the season norm and lifting LDZ demand. The gains have also filtered through to the back of the curve, with commodity markets offering little direction. Temperatures are set to turn colder next week which will lift heating demand, resulting in gains on the near curve. The prompt shows a strong increase and wind generation is also set to fall over the weekend, while a drop in coal has had little impact on the far curve.

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

Brent Summary

Brent Crude is stable this morning with lockdowns in China offering bearish pressure which has been matched by optimism surrounding the US financial stimulus package.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 48.13ppt and £56.32/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 - 22-01-2021

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.