Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

June Markets Update

Gas

  • Gas stocks are nearing capacity earlier than usual this year, with warm weather reducing demand.
  • The 1-year forward price for commercial gas closed at 30.08ppt by May 29th.

 

Gas Price Graph June 2020

 

Power

  • Power prices decreased towards the close of the month, with warm weather reducing the need for consumption and increasing the reliance on solar power.
  • By May 29th, the 1-year forward price for electricity had decreased to £39.85/MWh.

 

Electricity Graph June 2020

Oil

  • Oil prices are at their lowest in 20 years as demand increases significantly.
  • Global oil demand has dropped by 2.5million barrels per day. This is the first-time demand has decreased since 2009.
  • Between 2019-2025, global oil demand is forecast to grow at an annual rate of just below 1 million barrels per day.

 

Coal

  • The demand for coal is steadily falling as it is being replaced in power generation by renewable energy sources such as wind, solar, hydro, nuclear. 
  • The uncertainty around the future of coal is higher than for any other fuel.