Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

August Markets Update


  • Gas prices nudged higher at the start of July though a rise in renewables production reduced gas-fired power demand for a short period.
  • Market close data on 31st July revealed that the 1-year forward price for commercial gas decreased since last month, closing at 30.53ppt.Gas prices graph - August 2020


  • Commercial electricity decreased since last month, with the 1-year forward price closing at £42.00/MWh as of 31st July.
  • During COVID-19 lockdowns, power demand fell while low-cost wind and solar are quickly outgrowing the existing infrastructure.Electricity prices graph August 2020


  • Brent prices dropped below $43/b towards the end of July due to weak economic data released in the US, though this had climbed to around $44.2/b by 4th August.
  • US crude inventories fell by 8.6 million barrels in the lead up to August to 520 million; a big departure from analysts’ expectations for a 3-million-barrel drop.


  • The decline of coal production continues, witnessing a shrink in the global coal fleet for the first decline in history.
  • The decline in coal is believed to result from the economic shock of the pandemic combined with an increase in carbon price and tightening of pollution regulations in the EU.