6th September 2019 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas prices closed higher on Thursday, making marginal gains in line with the broader energy complex which saw both coal and oil close higher day-on-day. Colder weather and a drop in Norwegian flows were supporting spot prices, although gains remained limited due to continuous LNG deliveries and strong wind power generation. Power prices gained in the UK yesterday, tracking NBP Gas, however far curve prices were down despite the rise in clean fuel costs due to the strong rise in gas and coal prices.
Market Open Market Open
The Gas system is balanced and trading mostly flat to the closing price this morning, as weather forecasts remain mild with temperatures around seasonal normal and flows from Norway are improving as some maintenance has been completed. LNG send-outs and UK Gas exports to the continent are also up. Power prices are higher in early trading action this morning as contracts across the curve have firmed supported by the rises seen in the Gas markets. Overall, bearishness still hangs over the markets from Brexit amid trade and recession fears which have thus far kept a lid on markets.

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

Brent Summary

Brent has remained above $60/b this morning, supported by a bigger than expected draw in US Crude inventories yesterday. Trade tensions have eased between the US and China as talks are planned for next month. Demand remains strong for early September as Autumn approaches.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased slightly – closing at 43.67ppt and £49.35/MWh, respectively.

Click to enlarge graph

Energy Price Graph - 06-09-2019

Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.

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