2nd August 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices increased yesterday with bullish pressure provided by a rise in coal, power and carbon. The far-curve held firm despite a sharp drop in oil, while the supply outlook was unchanged, providing little direction to the prompt. Power prices strengthened during Thursday’s session with direction provided by rising fuel markets. Oil displayed a strong loss but this was offset by weaker coal and carbon. However, wind generation was expected to weaken further today, limiting losses on the prompt.
Market Open Market Open
The system is 25mcm long this morning due to mild temperatures and stable flows. Storage injections have also resumed and UK facilities are now 92% full. Meanwhile, a number of LNG shipments are heading for Europe which will further improve supply. As a result, gas prices have weakened, with falling oil a factor. Renewable availability remains low this morning but mild temperatures have reduced cooling demand, resulting in small losses at the front of the curve. Further out, mixed sentiment on commodity markets restricted movement in either direction.

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

Brent Summary

Brent 1st-nearby prices plummeted as the US announced that new tariffs would be placed on Chinese goods from the 1st of September 2019. This is expected to have a significant impact on global economic growth and demand for oil, which has led to a $4/b drop for Brent which now trades at $60.5/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas recorded a small increase, while commercial electricity moved down – closing at 49.48ppt and £54.82/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 - 02-08-2019

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