9th March 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices decreased on Friday as Russia rejected proposed OPEC production cuts, resulting in severe losses on oil markets. This had a knock on effect across all energy markets, while supply fundamentals were also slightly bearish. Power prices decreased along with gas, coal, carbon and especially oil markets. The Russian rejection of new production cuts has hit markets hard, while a windier and milder weather outlook for this week applied further downward pressure to the prompt.
Market Open Market Open
Oil continues to plummet this morning, dropping by 25% in some markets, with this heavy bearish pressure transferring to equity markets; this has of course resulted in losses across the gas curve. In terms of supply, the system is close to balance and flows are largely unchanged. Like gas, power contracts are also dictated by falling oil markets, with coal and carbon also displaying further losses. Fundamentals remain bearish due to a rise in wind generation and slightly milder temperatures.

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

Brent Summary

Brent 1st-nearby prices display their heaviest losses since 1991 as Russia rejected Saudi Arabia’s proposal of new production cuts. This is the worst possible scenario in terms of supply at a time when demand is extremely low due to the impact of the Coronavirus. Current production cuts are expected to expire at the end of the month and prices trade below $36.2/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 27.68ppt and £37.15/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 - 09-03-2020

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.