6th January 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices moved higher on Friday as contracts displayed a rebound from the fresh lows displayed at the end of 2019. A drop in flows from Russia into mainland Europe had little impact on prices and instead the gas curve found support from stronger oil prices, following events in Iran. Power prices increased on Friday as coal, gas, carbon and feedstock markets were all pushed up by strengthening oil. Overall fundamentals remained healthy but a mild weather outlook and strong wind levels did little to curb bullish movement.
Market Open Market Open
The UK gas system is oversupplied this morning but gas prices remain slightly bullish as energy markets continue to find direction from stronger oil. Coal markets also display gains but a mild weather outlook and healthy storage levels have helped to limit upward movement at the front of the curve. Sentiment on energy markets is largely unchanged this morning with on-going support provided by rising oil. Commodities have increased across the board and continue to dictate power prices which ignore a healthy supply/ demand outlook.

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

Brent Summary

Brent 1st-nearby prices climbed above $70/b at the end of last week but have eased down this morning. All eyes remain on Iran following US airstrikes which killed a top general, with some form of retaliation likely.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 39.41ppt and £45.98/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 - 06-01-2020

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