4th March 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices climbed higher on Tuesday, with the larger gains displayed by longer dated contracts. Energy markets were dictated by a rebound in oil, although the front of the curve was more subdued because of a balanced system. An expected drop in wind generation today helped the prompt increase strongly yesterday, although a milder weather outlook for later in the week limited upward movement along the rest of the near-curve. Further out, contracts followed gas and added to their price, finding support from a rise in oil.
Market Open Market Open
The UK gas system has moved long this morning as supply levels have ramped up to offset a rise in demand, while storage levels are also very healthy. As a result, gas prices are slightly weaker this morning, with minimal support provided by commodity markets. Power prices are mostly bearish this morning as coal, gas, oil and carbon are all down. Wind levels have plummeted today, as expected and the prompt has increased further but renewable generation is set to pick up over the weekend.

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

Brent Summary

Brent 1st-nearby prices lacks direction this morning following OPEC’s recommendation of further production cuts which provided support yesterday. Prices have moved down since then with weak economic data continuing to weigh 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 30.22ppt and £38.98/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 - 04-03-2020

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