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

Gas Power
Market Close Market Close
Gas prices climbed higher at the front of the curve yesterday, summer contracts strengthened in particular, while longer dated contracts displayed minor losses. A drop in oil and equities pressured down the far-curve, with concerns regarding a second wave of the Coronavirus in the US weighing on markets. Power contracts decreased yesterday, following a drop in coal, carbon and oil. Summer contracts were the most resilient, finding support from their gas counterparts and a warmer weather outlook.
Market Open Market Open
Gas is slightly bullish this morning despite a long system and weaker coal & oil. Contracts have found support from stronger European markets, ignoring largely bearish fundamentals. High wind levels have continued today but will drop significantly next week, helping the prompt climb higher. Overall sentiment along the power curve is mixed, with gas moving in the opposite direction to other fuel markets.

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

Brent Summary

Brent 1st-nearby prices have dropped to around $38.5/b this morning due to a rise in US storage levels and fears that the country could be experiencing a second wave of the Coronavirus.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 30.14ppt and £40.85/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 - 12-06-2020

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