|Gas contracts traded down on Tuesday, taking direction from bearish oil as markets continued to feel the effects of WTI falling below zero. Supply fundamentals were also comfortable, further weighing on the curve.
|Power followed gas yesterday as global energy markets were dictated by the crash in oil prices. Strong wind and solar generation also reduced reliance on gas, contributing to losses on the prompt and the rest of the near curve.
|The gas curve continues to weaken as oil markets display further losses. Demand is also down due to warmer weather and healthy renewables, while storage levels remain high – however, the system has opened 6mcm short due to a rise in exports.
|The Day-Ahead contract has rallied higher this morning as wind levels are expected to drop tomorrow. Meanwhile, the rest of the curve has decreased as commodities continue to suffer from the current pandemic.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have failed to find much support as inventories across the world are close to full due to weak demand. Traders are concerned that similar crashes to what we saw in the US on Monday could occur again.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 31.40ppt and £38.95/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
If you would like to learn more about how Apollo Energy can help your business find the best deal on its gas and energy contracts then feel free to get in touch by calling us on 01257 239500 or using the form on our contact form.