23rd October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices increased towards the end of Thursday’s session, with the November contract displaying the most significant gains. A rebound in commodities and a tighter demand outlook for today offered support to the curve. Power contracts displayed some upward movement yesterday, with a rise in gas providing support in the afternoon. Wind generation was expected to fall slightly today which helped the prompt add to its price, with temperatures also expected to decrease next week.
Market Open Market Open
Maintenance has come to an end at the Oseberg field, resulting in higher Norwegian imports into the UK, keeping the system oversupplied. However, prices have found support from news that production at the Groningen gas field (the largest in Europe) must fall by 6% to meet Dutch government targets. Power has followed gas this morning and most contracts trade slightly higher, with colder weather dictating the front of the curve. Gains on coal and carbon markets have helped towards increases on the far curve.

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

Brent Summary

Brent 1st-nearby prices continue to buffer around $42/b, although additional bearish pressure has come from news that BP shares have dropped to their lowest point in 26 years.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 40.81ppt and £47.98/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 - 23-10-2020

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