27th May 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices rebounded yesterday, catching up with global markets following the bank holiday on Monday. Stock markets and commodities all strengthened over the weekend as the easing of lockdowns has boosted economies. Power prices increased on Tuesday, taking direction from a rise in gas. Markets were still rather quiet following bank holidays in Europe, although commodities were largely bullish.
Market Open Market Open
Markets are stable-to-bearish this morning which has helped the majority of gas contracts record a small loss. However, the UK gas system has opened short as more gas-fired power is required to cover the drop in wind production; this has limited downward movement at the front of the curve. Power contracts have eased down this morning as coal, oil and gas markets have opened slightly down. A drop in wind availability has had little impact on the prompt which instead has found support from a warm weather outlook.

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

Brent Summary

Brent 1st-nearby prices remain above $36/b but the bullish trajectory has slowed as Russian production may increase in July as part of the agreement with OPEC. However, Saudi Arabia are keen to extend production cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved slightly higher – closing at 30.20ppt and £40.35/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 - 27-05-2020

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