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

Gas Power
Market Close Market Close
The majority of gas prices closed higher on Wednesday as demand levels are set to grow over the weekend and tighter supply is expected in January. Meanwhile, progress in terms of Brexit negotiations offered some optimism in the afternoon. Power followed gas throughout yesterday’s session and most contracts ended the session higher. A tighter supply/ demand outlook and stronger carbon were the main supportive factors.
Market Open Market Open
Gas prices have eased down this morning with very low demand weighing on the prompt. However, the bearish sentiment is expected to be short-lived as colder weather is set to hit over the weekend and low renewable power will result in increased CCGT demand. Wind generation is expected to fall over the next couple of days which has helped the prompt add to its price. The rest of the near curve has eased down, following the gas curve, while longer dated contracts are stable-to-bullish.

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

Brent Summary

Brent Crude has climbed by over $1/b as recent figures in the US show an unexpected decrease in storage levels. Meanwhile, confidence that the UK & the EU are close to agreeing a trade deal has helped to weaken the Dollar, offering additional support.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity climbed higher, closing at 44.00ppt and £54.40/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 - 24-12-2020

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