28th July 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices eased down on Monday afternoon as upward movement on coal and carbon markets calmed, while power traded lower. Oil remained flat, while strong wind generation and improved imports balanced the system. Power prices recorded strong losses yesterday due to a drop in carbon emissions and a late decrease in gas contracts. A strong wind forecast for today helped to pressure down the prompt, with the losses filtering through to the rest of the near curve.
Market Open Market Open
The system remains balanced this morning as weaker demand has been offset by reduced Norwegian flows due to pipeline maintenance. Renewable power is set to drop significantly tomorrow which has offered support to the prompt, while the rest of the curve is largely flat. Power prices are bullish at the start of today’s session as coal and carbon markets have rebounded, while oil is almost unchanged. Renewable generation levels are also expected to fall tomorrow, placing greater reliance on gas which has lifted the prompt.

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

Brent Summary

Brent 1st-nearby prices are barely changed from Friday’s open as economic recovery has slowed due to a spike in Covid-19 cases, preventing prices from rising above $44/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 29.88ppt and £41.60/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 - 28-07-2020

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