10th June 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices were on the rise during Friday’s session due to an undersupplied system. A drop in wind generation increased gas-fired power demand, while LNG send-outs weakened, sending the system short. Meanwhile, far-curve prices found support from a bullish oil market as Russian look set to extend production cuts. Power prices followed the gas curve and traded higher on Friday, with a rise in feedstocks and oil prices the main market drivers. A number of European countries are enjoying a bank holiday today and traders covered their short positions ahead of this.
Market Open Market Open
The system is still slightly short this morning with little change to supply/ demand levels. This has helped near-curve prices inch higher, while contracts further along the curve are generally stable with oil providing little direction following strong gains towards the end of last week. Weaker wind levels and cooler weather has resulted in gains on the near power curve this morning, while an increase in coal and carbon prices have supported contracts on the far-curve. However, milder temperatures are expected to return to the UK over the coming weeks which has offered some resistance.

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

Brent Summary

Brent 1st-nearby prices rallied higher on Friday as OPEC-led production cuts in Russia are likely to be extended, which should see other countries following suit. Brent has since stabilised this morning and currently trades around $63.3/b.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 49.82ppt and £53.83/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 - 10-06-2019

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