3rd September 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices eased down yesterday thanks to an oversupplied gas system despite on-going maintenance in Norway. A number of LNG deliveries are also expected to dock in Europe, while coal, oil and carbon markets weakened; resulting in strong bearish sentiment. Power prices were dictated by the gas market yesterday with a long gas system and a healthy LNG outlook providing bearish pressure. A rise in wind levels also reduced reliance on gas, while weaker commodity markets pressured down prices on the far-curve.
Market Open Market Open
Gas contracts continue to move down this morning, all be it marginally. Coal and carbon are almost unchanged, while oil has weakened further. Supply fundamentals are also little changed, with stable renewables helping to reduce gas-fired power demand. Power prices are generally stable this morning, although traders are keeping an eye on the carbon market which is expected to break its current resistance level; any change would provide direction to the power curve.

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

Brent Summary

Brent 1st-nearby prices display further losses with bearish pressure provided by the on-going trade dispute between the US and China, combined with an unexpected rise in OPEC production. However, Hurricane Dorian is set to hit the east coast of America which will likely result in a halt in production which would support prices.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 43.45ppt and £49.00/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 - 03-09-2019

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