8th July 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices recorded further gains yesterday, following upward movement on other energy markets. Demand for gas-fired power was expected to grow even further today due to weak renewables. Power contracts added to their price on Tuesday, supported by coal, gas and feedstocks. Wind and solar levels were also forecast to fall today, placing greater reliance on more expensive gas-fired power.
Market Open Market Open
The system has opened long this morning despite high power demand as flows are stable; storage injections have also decreased as facilities near capacity. Meanwhile, European economies continue to recover as businesses get back to normal. The combination of these factors have resulted in stable-to-bearish movement along the gas curve today. Power prices have opened slightly lower this morning, with coal and gas markets both softening. Carbon is also unsupportive, while weather forecasts point to temperatures around the seasonal norm which should keep a lid on demand.

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

Brent Summary

Brent 1st-nearby prices are practically unchanged as oil markets struggle for direction, caught between weak demand in the US and global production cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity traded lower, closing at 34.41ppt and £45.48/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 - 08-07-2020

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