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

Gas Power
Market Close Market Close
Near curve gas prices decreased on Monday, taking direction from a balanced system. Overall demand levels remained low despite a drop in temperatures, while healthy renewables reduced gas-fired power demand. Power prices eased down yesterday, following weaker gas, with coal and oil markets both closing lower. Wind and solar levels were also healthy, reducing reliance on gas which resulted in a loss on the prompt.
Market Open Market Open
The system remains balanced this morning despite a rise in demand. Gas prices are little changed, with commodity markets offering mixed direction. Meanwhile, annual maintenance work in Norway will see flows re-directed from France and the Netherlands to the UK over the next week. Power prices have opened slightly weaker as carbon and coal display minor losses and gas is stable. Cooler weather has lifted demand but renewables remain comfortable, limiting any bullish impact.

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

Brent Summary

Brent 1st-nearby prices have inched higher this morning as Saudi Arabia has agreed to a further production cut of 1 million barrels per day in June.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas increased, while commercial electricity recorded a loss – closing at 31.27ppt and £38.35/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 - 12-05-2020

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