13th June 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices stabilised towards the end of Wednesday’s session following an indecisive day of trading. Overall commodity markets were bearish, with coal and oil both displaying losses, but higher gas demand offered support to the front of the curve. Power prices eased down yesterday with little direction provided by the gas market. Instead, prices followed weaker coal and oil contracts, although colder weather and a lack of solar power limited losses at the front of the curve.
Market Open Market Open
Gas prices have turned bullish this morning following a sharp rise in oil prices. Demand levels also remain high, helping the prompt record a gain, with the system 15mcm short despite strong LNG send-outs. Demand is currently 57mcm above the seasonal norm due to cooler weather, with limited supply as a result of maintenance at Norwegian facilities. Market sentiment is bullish this morning with oil showing a strong increase and coal, feedstocks and carbon all displaying a rebound. Contracts have followed their gas counterparts, with high demand and limited supply a supportive factor.

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

Brent Summary

Brent 1st-nearby prices were extremely bearish yesterday but display a significant increase this morning as an oil tanker off the gulf of Oman is currently on fire following a suspected attack, with fear of further attacks. Brent currently trades above $62.4/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 49.05ppt and £53.43/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 - 13-06-2019

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