3rd February 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Improved wind levels reduced reliance of gas-fired power yesterday, while a flurry of LNG deliveries are also expected to dock in the UK over the next ten days, weighing on near curve gas prices. Meanwhile, movement at the back of the curve was slightly bullish due to rising oil markets. A healthier outlook for gas and improved wind generation resulted in losses across the near power curve on Tuesday. However, a rebound on commodity markets offered support further out.
Market Open Market Open
Gas prices trade lower this morning on the back of an expected upturn in temperatures over the next few days and a busy LNG schedule for this month. Demand has dropped below the seasonal average and the system is oversupplied, with healthy wind generation also reducing CCGT demand. Power prices follow bullish commodity markets this morning, with oil markets climbing for a third consecutive day. Coal and carbon contracts also continue to strengthen, although an improved supply/ demand outlook has offered some resistance at the front of the curve.

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

Brent Summary

Brent Crude has climbed towards $57.5/b with an unexpected decline in US crude and gasoline stocks offering further support, in addition to Saudi production cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher, closing at 45.87ppt and £56.07/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 - 03-02-2021

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