29th October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices eased off during Wednesday’s session and followed downward movement displayed on overall energy markets. Maintenance at Kollsnes was also expected to be concluded today, relieving any tightness on the system. Wind generation levels were forecast to increase today which helped the prompt record a sizeable loss yesterday. Temperatures were expected to sit above the season norm over the next few days, resulting in a more comfortable energy system and losses on the rest of the near curve.
Market Open Market Open
An expected flurry of LNG deliveries has weighed on the near gas curve this morning, while the system has moved 4mcm long thanks to a drop in heating demand, providing additional bearish sentiment. Meanwhile, weakening commodities have applied downward pressure to longer dated contracts. Power prices display varied changes this morning with some strengthening towards the back of the curve. Wind levels are expected to maintain current levels tomorrow, while gas demand is down, resulting in a loss on the prompt.

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

Brent Summary

Brent 1st-nearby prices are dictated by the rising number of Coronavirus cases across the world, with a rise in US stocks also adding to the bearish pressure; Brent currently trades around $39.1/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 38.69ppt and £46.40/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 - 29-10-2020

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