23rd April 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed minor losses yesterday, still feeling the effects of the oil price crash. However, the prompt climbed higher as the UK’s reliance on gas-fired power was expected to increase today due to weaker renewables. Power prices moved higher towards the end of Wednesday’s session due to an expected rise in gas demand today as wind generation was forecast to drop. A rebound in oil also offered support, although coal and gas weakened further.
Market Open Market Open
The UK gas system has opened long this morning despite a rise in demand, as flows remain healthy. This has helped to weigh on contracts across the near curve, although the prompt has climbed higher due to a weak renewable power outlook. Meanwhile, oil markets have increased providing some support further out. Oil prices continue to recover this morning but carbon and feedstocks opened flat. Power contracts display further gains on the back of the rise in oil, while a weak wind forecast has supported the prompt once again.

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

Brent Summary

Brent 1st-nearby prices have moved upwards, showing a slight recovery from the lows seen earlier in the week. Production cuts have offered some support, while Trump’s comments in regard to ‘shoot and destroy’ tactics on Iranian Navy vessels has also provided bullish pressure.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas moved down, while commercial electricity displayed a gain – closing at 31.10ppt 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 - 23-04-2020

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