12th October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices displayed some losses during Friday’s session, although the Day-Ahead contract found support from a weak renewable power and cold weather outlook for the weekend and today. Weak wind generation helped the prompt climb higher on Friday, with temperatures also forecast to remain below the seasonal norm this month, lifting the rest of the near curve.
Market Open Market Open
Gas prices have opened lower this morning as reports suggest an agreement has been reached in Norway regarding oil worker’s wages, signalling an end to strike action. The system has also opened 6.7mcm long and oil markets have eased down, weighing on contracts across the curve. Power markets have followed gas and opened lower this morning, although a colder weather outlook continues to limit losses on the near curve. An improvement in wind levels tomorrow has helped to pressure down the prompt, while fuel markets fail to offer support to far curve prices.

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

Brent Summary

Brent 1st-nearby prices increased by around 9% last week, the largest weekly gain since June. However, prices have corrected down this morning, as weak global demand outweighs any bullish fundamentals as COVID-19 cases continue to rise.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial decreased, closing at 38.84ppt and £47.08/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 - 12-01-2020

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