16th November 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices increased during Thursday’s session with the cold weather outlook acting as the main market driver at the front of the curve, with temperatures expected to fall 2-3°C below the seasonal norm. Meanwhile, a rebound on coal and oil markets offered support to prices on the far-curve. The system has opened 30mcm long this morning as flows from Norway and the Netherlands have increased, while demand is unchanged. This has helped to cap the gains but the bulls remain in control due to the higher demand forecast and rising fuel markets.
Market Open Market Open
Power prices tracked their gas counterparts and moved higher yesterday with the expected drop in temperatures next week and a drop in wind generation today offering support to the prompt and the rest of the near-curve. Further out, contracts found strength from an increase in carbon, coal and oil markets. Carbon, coal and Brent continue to move higher this morning, resulting in further gains at the back of the power curve. The front of the curve is supported by rising biomass feedstock prices and the cold weather forecast which will lift heating demand.

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

Brent Summary

Brent 1st-nearby prices increased by $0.50/b yesterday with direction coming from comments made by OPEC members in regards to significant production cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 63.30ppt and £61.88/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 - 16-11-2018

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