1st June 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close  Market Close
Gas prices moved higher during Friday’s session with the larger increases displayed at the back of the curve. High storage levels could pose problems as they are likely to be full well before winter, leaving nowhere to store excess supply. Power prices found support from an increase in gas and carbon on Friday, however, coal decreased, limiting the upward movement. Improved solar availability and warm temperatures also helped to weigh on the prompt.
Market Open Market Open
Gas contracts have opened lower this morning, erasing Friday’s gains. Warm weather has reduced demand and resulted in an oversupplied system, while commodity markets offer little direction. The majority of power prices have opened lower this morning, although some have been pushed higher by strengthening carbon. Meanwhile, the UK is set to experience cooler and windier weather this week which should see a decrease in gas-fired power.

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

Brent Summary

Brent 1st-nearby prices trade above $37.8/b this morning, strengthening on the back of global production cuts although the market could see a reversal if Russia intends to raise output at the end of this month.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 29.33ppt and £39.55/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 - 01-06-2020

If you would like to learn more about how Apollo Energy can help your business find the best deal on its gas and energy contracts then feel free to get in touch by calling us on 01257 239500 or using the form on our contact form.