27th January 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices decreased on Friday despite falling oil, with contracts instead finding direction from weaker carbon. An expected rise in wind generation at the start of this week also helped to weigh on the prompt as demand for gas-fired power would fall as a result. Power prices moved higher at the end of last week, ignoring lower carbon. A windier outlook helped to weigh on the prompt but the rest of the curve was largely bullish, with stronger coal a factor.
Market Open Market Open
The UK gas system remains short this morning despite a significant drop in gas-fired power demand. Near-curve power prices have moved higher on the back of the supply shortfall, with expectations of colder weather also a factor. Power prices display minor changes with a colder weather forecast offering bullish resistance. Weakening oil markets have helped to cap gains further along the curve, while gas and carbon contracts offer little direction.

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

Brent Summary

Brent 1st-nearby prices have plummeted to below $58/b as fears grow in regards to Chinese oil transit due to the spread of the Coronavirus, with numerous transport facilities in lockdown.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 32.05ppt and £40.57/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 - 27-01-2020

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