US benchmark oil prices ended the session a modest 2% lower
25 May 2020
UK front month contract fell below 8.00p on Friday morning, its lowest in 22 yearsThe UK front month contract fell below 8.00p on Friday morning, its lowest in 22 years before rallying later in the day to close at 9.46p, up marginally day-on-day. The slump in prompt and near futures gas prices seen earlier in the week stalled on Friday with day ahead gas gaining 0.90p while contracts for the remaining summer months recording modest gains on the day. Prices out to September remained around 3.00p lower week-on-week however and the average price for the remainder of the year remained below 20.00p. Prices for the front winter and beyond reversed some of the recent gains as crude oil turned lower on the day.
GB baseload power futures eased for a second consecutive dayThe day ahead price rebounded to £23/MWh but baseload power for the long weekend in the UK went negative on forecast record low demand and strong renewable generation. Wind generation was forecast at 14GW for Saturday, falling off by Monday but with solar generation picking up, almost the entire GB demand over the weekend could be met by renewables. GB baseload power futures eased for a second consecutive day on Friday as oil prices turned lower. Despite a further strengthening in carbon prices, ongoing subdued demand and a higher share of renewable power in the GB stack maintained downward pressure on power futures.
Crude oil turned lower on Friday stemming the strong rebound in prices as market concerns that the growing tensions between China and the U.S. may adversely impact global economic recovery. US benchmark oil prices ended the session a modest 2% lower, putting an end to a six-day, 34% rally higher as some investors worried that the renewed tensions between the US and China might slow down recovery as the world tries to overcome the coronavirus pandemic. Brent crude shed 93 cents to settle at $35.13 while West Texas Intermediate eased by 67 cents to $33.25 a barrel.
Crude oil turned lower on Friday