24th September 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices traded higher across the curve during Wednesday’s session, finding support from a rise in coal & oil. Meanwhile, the system was oversupplied during the session, weighing on the prompt, with an improved renewable power outlook for today applying additional bearish pressure. Power prices decreased yesterday, with an improved wind and solar outlook for today applying bearish pressure to the prompt. A rise in coal, gas and oil helped to lift the rest of the curve.
Market Open Market Open
The system is slightly oversupplied this morning, tightened by a drop in LNG send-outs and colder weather, although improved wind levels has reduced demand for gas-fired power. The drop in temperatures has offered support to the front of the curve, while weaker commodities have weighed on far curve prices. Commodities trade lower this morning which has contributed to minor losses along the power curve, during a relatively stable opening to today’s session. The Day-Ahead contract displays another loss as renewables are expected to improve again tomorrow, while Front-Month is unchanged.

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

Brent Summary

Brent 1st-nearby prices are practically unchanged as OPEC production cuts have been countered by a weak demand and economic outlook, with fears of a second wave of the Coronavirus impacting global markets.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 36.28ppt and £47.20/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 - 24-09-2020

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