20th May 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices opened at a premium yesterday but corrected downwards throughout the session. A drop in oil helped to apply bearish pressure, while gas-fired power demand was also expected to increase today. Power prices displayed mixed changes on Tuesday, although any movement was minor. Weaker, oil, coal and feedstocks helped to weigh on the curve but a weak wind generation forecast offered resistance at the front.
Market Open Market Open
The UK gas system is oversupplied this morning despite extra gas input into the power mix. LNG storages are also around 90% full and warm temperatures are expected to weigh on demand. As a result, near curve gas contracts have opened lower. Coal and gas markets have failed to offer any support in either direction this morning, while oil and carbon are slightly higher. Meanwhile. warm temperatures have offset the impact of low wind availability and most power contracts have opened slightly lower.

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

Brent Summary

Brent 1st-nearby prices have stabilised following some strong upward movement. Recent figures suggest a significant drop in US crude stocks, while production cuts are also in effect; as such, a further rally in prices cannot be ruled out.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity was unchanged– closing at 31.63ppt and £40.13/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 - 20-05-2020

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