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

Gas Power
Market Close Market Close
Gas prices displayed a minor rebound in the UK yesterday with a weaker Pound offering support to the curve. An undersupplied system, colder weather and a more limited wind outlook also contributed to gains. Power prices followed gas markets on Monday and moved higher on the back of a weaker Pound which has made importing from European markets more expensive. The near-curve also found additional support from a downward revision in temperature forecasts.
Market Open Market Open
The UK gas system is balanced this morning, while commodity markets have moved in different directions; oil has rebounded, while coal, power and carbon are stable-to-bearish. Gas prices have opened relatively flat on the back of this lack of direction. Temperature forecasts have shifted again and are expected to be a touch warmer later in the week which has helped to cap upward movement on the near-curve. A rise in oil prices has also been largely ignored as other fuel markets are stable, resulting in only minor changes on the power curve this morning.

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

Brent Summary

Brent 1st-nearby prices are showing signs of recovery as OPEC members are set to meet today, with an announcement of further production cuts a strong possibility. Cuts are likely to be imposed in the second quarter of this year to counter the economic impact of the Coronavirus; Brent currently trades around $53.2/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 30.04ppt and £38.85/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 - 03-03-2020

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