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

Gas Power
Market Close Market Close
Gas followed bullish coal, carbon and oil during Monday’s session, although an oversupplied system kept a lid on near curve contracts despite a drop in temperatures and an increase in CCGT demand. Day-Ahead power moved down as wind generation was expected to increase strongly today, reducing the need for gas-fired power. Further out, prices followed gas and were pushed higher by rising commodity markets.
Market Open Market Open
Gas prices have decreased this morning with the exception of the prompt which has found strength from colder weather and a drop in wind levels tomorrow, according to forecasts. The gas system remains oversupplied due to low demand but an increase is expected from the 2nd of December when the country eases out of lockdown. Movement along the power curve is similar to gas with an expected drop in wind levels tomorrow, helping the prompt record a strong gain, combined with colder temperatures. Rising coal also offers some resistance at the back of the curve, limiting losses.

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

Brent Summary

Brent crude has climbed above $46/b with another OPEC meeting scheduled for the end of November when an extension to production cuts is likely to be decided.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved lower, closing at 36.12ppt and £45.36/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 - 24-11-2020

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