4th June 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices increased yesterday, with cooler weather lifting demand levels at a time when Norwegian supplies and LNG send-outs are reduced. The far-curve displayed minor gains on the back of a recovering oil market. Power prices followed gas and traded higher on Wednesday, with a rise in feedstocks also a factor. Meanwhile, a drop in temperatures was offset by higher wind generation levels and capped upward movement on the prompt.
Market Open Market Open
The UK gas system is oversupplied this morning, despite a rise in gas-fired power demand. Overall energy markets are also stable today and this has resulted in small decreases across the gas curve. Corresponding fuel markets are stable-to-bearish which has weighed on power prices today. Wind levels have dipped but are expected to pick up again tomorrow, while cooler weather is set to continue into next week, providing mixed sentiment.

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

Brent Summary

Brent 1st-nearby prices trade around $39.8/b as oil markets have calmed following a strong bullish streak. Expectations of prolonged production cuts in Russia is the main talking point right now.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 29.78ppt and £39.83/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 - 04-06-2020

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