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

Gas Power
Market Close Market Close
Gas prices decreased during Monday’s session, with seasonal contracts showing the heaviest losses. Supply levels remained healthy despite a slight drop in temperatures, while oil prices slipped on the back of weakening fundamentals across the globe. Wind generation was forecast to decrease today which helped the prompt climb higher yesterday, while the rest of the near curve followed weakening gas. Further out, movement was largely bearish with a lack of support offered by commodity markets.
Market Open Market Open
Norwegian flows into the UK have picked up slightly but a decline in wind levels has increased demand for gas-fired power generation, resulting in losses on the near curve. Brent also displays another loss, weighing on prices further out. Power prices display mixed movement this morning with some weakening at the front of the curve and gains further out. The Day-Ahead contract displays a strong loss as wind levels are set to improve significantly tomorrow, while temperatures remain slightly above the seasonal average.

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

Brent Summary

Brent 1st-nearby prices continue to move down with markets lacking in any clear support. Oil markets are unlikely to show any significant upward movement until after the US election next week.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 39.29ppt and £47.58/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 - 27-10-2020

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