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

Gas Power
Market Close Market Close
Tuesday saw a generally volatile day of trading with most contracts displaying sharp fluctuations over the course of the session before a late rally. The supply outlook was stable with an outage in Norway impacting flows into the UK, while a weaker Pound offered support further along the curve. Power prices closely followed gas yesterday with a weak Pound a factor behind gains on the far-curve, while carbon prices also continued to strengthen. The prompt was one of the exceptions to the bullish trend as wind levels are expected to improve, reducing reliance on gas-fired power.
Market Open Market Open
Gas prices continue to move higher this morning as the system remains undersupplied as demand levels are above the seasonal norm and LNG/ Norwegian flows are down. A slight increase in oil prices also provided some support to longer-dated contracts. Power contracts display additional gains this morning and continue to track the movement of gas. Coal has weakened but carbon still provides support, with oil also recording a minor rebound. Meanwhile, improved renewable availability continues to weigh on the prompt.

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

Brent Summary

Brent 1st-nearby prices displayed a small rebound yesterday on the back of bullish API figures but market sentiment remains weak due to contrasting fundamentals. Tensions in Iran have been offset by a weak demand forecast, providing little direction.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher – closing at 47.68ppt and £54.33/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 - 10-07-2019

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