9th October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices were pushed higher by a rallying oil market, with expected strike action at Norwegian oil & gas facilities also offering support. Colder weather continued to lift demand but its impact was offset by healthy LNG send-outs. Power prices followed their gas counterparts and increased yesterday, with rising oil prices the main driver of energy markets. Cold weather continued to lift the near curve, with temperatures expected to remain below the seasonal norm for most of October.
Market Open Market Open
An oversupplied system has helped to weigh on the front of the curve this morning, this bearish sentiment was amplified by news of a further six LNG cargoes expected to dock in the UK this month. However, the rest of the curve moved higher, as a buoyant oil market provides support to the overall energy complex. Weak renewable generation and colder temperatures are expected over the weekend and the start of next week, helping the prompt add to its price. Healthy gas supply limited gains on the rest of the near curve but prices remained supportive due to bullish commodities.

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

Brent Summary

Brent 1st-nearby prices have climbed above $43/b as Hurricane Delta has impacted production in the US and OPEC released a positive statement, claiming the worst is over for oil markets.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial increased, closing at 39.62ppt and £48.24/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 - 09-10-2020

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