28th June 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved down yesterday afternoon with a drop in carbon weighing on the far-curve. In terms of shorter dated contracts, bearish pressure was provided by warmer weather and improved renewables which reduced demand. Power prices followed their gas counterparts and displayed losses yesterday, with weaker coal and carbon the main market drivers. Wind levels are also expected to ramp up next week which will reduce demand for gas, while solar should remain stable.
Market Open Market Open
Sentiment on the gas curve is unchanged this morning as carbon and coal display further losses. Short term fundamentals are also little changed, although temperatures are expected to drop off next week but will remain around the seasonal norm in the UK. Coal, gas and carbon markets have decreased further, while the oil market is more resilient. As a result, power prices have opened at a discount despite higher cooling demand due to warm weather.

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

Brent Summary

Brent 1st-nearby prices are stable this morning following a sharp rise yesterday due to weak US inventories. Meanwhile, the G20 meeting has begun in Japan today which should provide fresh insight into US/ Chinese trade deals.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 47.28ppt and £53.25/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 - 28-06-2019

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