12th March 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Market
Market Close Market Close
Gas prices rebounded again yesterday afternoon with the exception of the prompt which was pressured down by a healthy supply/ demand outlook for today. The Front-Month contract climbed higher which filtered through to the rest of the curve, ignoring bearish sentiment on commodity markets. Power prices found support from a rise in gas prices, although the prompt recorded a loss thanks to a healthy renewable generation outlook for today. A milder weather forecast also offered some resistance on the near-curve, while commodity markets remained weak.
Market Open Market Open
This morning sees a weak opening on the gas curve, dictated by falling oil and coal, combined with an oversupplied system. The US has banned travel to Europe, apart from the UK which has also hit equity markets, with further losses expected. The Coronavirus pandemic is resulting in extreme prevention measures across the world which continues to weigh heavily on financial markets. Power prices have moved down alongside other energy markets, with a comfortable supply outlook adding to the bearish sentiment.

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

Brent Summary

Brent 1st-nearby prices have dropped towards $35/b as Saudi Arabia and the UAE are expected to take action ahead of potential war for oil market shares, forcing the US to protect its shale gas industry.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher – closing at 29.52ppt and £38.43/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 - 12-03-2020

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