11th June 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed mixed changes yesterday, with prompt and summer contracts moving down and longer dated contracts recording small gains. The oil market was torn between OPEC production cuts and a rise in US storage levels. The near curve was pressured down by weak demand and an expected rise in temperatures, while longer dated contracts found support from a rise in carbon.
Market Open Market Open
The UK gas system is oversupplied this morning with a surge in wind levels reducing gas-fired power demand. Coal and Oil markets have also eased down, resulting in losses on most gas contracts at the start of the session. Wind levels have increased significantly today, reducing reliance on gas-fired power, however, these levels are expected to fall considerably as we head into the weekend. Today’s strong levels of renewable power and weakening coal & carbon markets have contributed to losses along the power curve this morning.

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

Brent Summary

Brent 1st-nearby prices continue to hover around $41/b as the latest EIA report provided mixed sentiment to oil markets.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 29.88ppt and £40.50/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 - 11-06-2020

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