3rd February 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved down on Friday, recording an overall weekly loss, with little in the way of support. Stronger supply and low demand helped to pressure down the near-curve, while the far-curve found direction from weaker commodities. Power contracts decreased across the curve on Friday, with healthy wind generation and mild temperatures contributing to losses at the front of the curve. Meanwhile, a slight rise in carbon had little impact as coal markets stabilised.
Market Open Market Open
The UK gas system is balanced this morning as demand levels have increased slightly. The short term weather forecast points towards above average temperatures, while wind levels will remain strong, reducing gas-fired power demand. As a result, sentiment across the gas curve is bearish, with weaker oil weighing on fuel markets. A strong decline in Chinese markets has impacted energy costs across the globe this morning, with further losses expected throughout the session. In terms of fundamentals, weather forecasts are unchanged and continue to apply bearish pressure to the front of the curve.

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

Brent Summary

Brent 1st-nearby price display a strong loss and trade around $56.6/b this morning. Weak oil demand, on the back of the Chinese health crisis heavily weighs on the market.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 29.65ppt and £38.30/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 - 03-02-2020

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