3rd June 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
The UK gas system was undersupplied yesterday which resulted in gains at the front of the curve. Further out, prices found support from a rise in equities and commodities as Brent surpassed the $40/b mark. Power contracts moved up across the curve on Tuesday, with oil, gas, carbon and feedstocks all climbing higher throughout the session. Oil was the main market driver as traders are optimistic that oil cuts will be extended.
Market Open Market Open
The system has moved long this morning as a rise in wind generation has reduced demand for gas-fired power. Oil remains bullish following a downward correction overnight and the majority of gas prices display gains today. Sentiment is practically unchanged this morning, although improved wind generation has helped to weigh on the prompt; a drop in temperatures will also reduce demand for cooling. Meanwhile, coal, gas and feedstocks remain bullish.

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

Brent Summary

Brent 1st-nearby prices climbed above $40/b yesterday but has since dipped closer to $39.6/b. Markets remain supportive due to expectations that Russia will extend production cuts beyond June.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 30.07ppt and £40.13/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 - 03-06-2020

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