6th July 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices increased on Friday despite overall weakness on broader energy markets. Carbon was the exception to the bearish sentiment and was the main market driver for gas. Power prices traded lower at the front of the curve on Friday, with a strong wind forecast weighing on the prompt. A drop in coal and oil also forced down contracts, although resistance was provided by a rise in gas and carbon.
Market Open Market Open
The UK gas system is oversupplied this morning as strong wind generation has reduced gas-fired power demand, in addition to a rise in Norwegian and LNG send-outs. Despite this, gas prices continue to move higher as coal, carbon, oil and power have all strengthened. Power prices have been pushed higher by corresponding markets, with feedstocks, oil and carbon all opening at a premium. Governments in Europe have provided more economic stimulus which in turn has lifted carbon allowances.

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

Brent Summary

Brent has dropped back below $43/b as a surge in new COVID-19 cases in the US has led to a downward revision is demand forecasts. However, better than expected unemployment figures has offered some support.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity traded higher, closing at 33.28ppt and £44.73/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 - 06-07-2020

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