13th October 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
The UK gas system remained slightly oversupplied yesterday, weighing on the prompt, with an expected rise in wind generation today also applying bearish pressure. Colder weather limited losses further along the near curve, while contracts at the back of the curve were pressured down by weaker oil. Renewable generation was expected to improve today, with similar wind levels also forecast for Wednesday, helping the prompt shed from its price on Monday. Below average temperatures provided resistance, although weaker commodities helped towards losses on the far curve.
Market Open Market Open
The system is slightly tighter this morning despite a reduction in gas-fired power demand as LNG send-outs are down compared to previous sessions. Cooler weather continues to offer support to prices, while some strike action is still taking place at Norwegian oil facilities. The majority of power prices display minor decreases this morning, following a slide across the overall energy complex. The prompt displays a small loss with similar levels of renewable power expected tomorrow and little change to temperatures in the UK.

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

Brent Summary

Brent 1st-nearby prices display another loss as last week’s rally was short-lived, with markets taking direction from the likelihood of a second wave of the Coronavirus, forcing countries into further lockdowns and reducing demand.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 38.48ppt and £46.89/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 - 13-10-2020

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