23rd February 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices decreased yesterday as mild weather resulted in a significant drop in demand, while an improved situation in the US helped towards weakening on the global energy complex. A healthy LNG schedule also helped to weigh on near curve prices. Wind generation dropped considerably on Monday but an expected improvement today, combined with mild temperatures helped the prompt record a small loss. The rest of the curve followed gas and moved down, thanks to the healthier supply/ demand outlook.
Market Open Market Open
Gas prices have opened higher this morning, taking direction from bullish movement on the oil market, with prices rising by 0.6ppt, on average. The prompt is one of the few contracts to post a loss as the system is 17mcm long, with demand remaining well below the seasonal norm. Power prices have followed the gas market and display gains this morning, with wider commodities trading higher due to a rebound in oil. However, mild temperatures and improved wind generation has helped the prompt shed from its price.

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

Brent Summary

The return of oil production facilities in the US has supported oil contracts, with Brent Crude trading above $65.2/b this morning. This week’s latest OPEC meeting is also expected to provide additional bullish sentiment.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 44.49ppt and £54.76/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 - 23-02-2021

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.