14th May 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices were bearish in the main during Wednesday’s session, pressured down by weakening coal and oil following a sell-off on stock markets. Recent cases of Coronavirus in Germany & South Korea pushed traders into cashing in on profits, fearing a new wave of the pandemic. Power prices were dictated by lower coal, gas and feedstocks yesterday, with oil also displaying a loss. Cooler weather helped to lift demand but this wasn’t enough to result in gains on the near curve.
Market Open Market Open
Gas prices have opened flat this morning with coal and oil markets displaying a rebound. The UK gas system is balanced and warmer temperatures are expected next week which will weigh on demand. Fuel markets are bullish this morning, with feedstocks expected to follow a rebound in oil. An ease to the lockdown has also resulted in higher demand levels, limiting any downward movement on the power curve.

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

Brent Summary

Brent 1st-nearby prices have recovered from yesterday’s losses but remain below $30/b. Support was provided by Saudi output cuts to the Asian market.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 30.70ppt and £39.10/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 - 14-05-2020

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