17th March 2021 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Improved imports, a drop in demand and high LNG send-outs resulted in a long UK gas system yesterday which helped to pressure down near curve prices. Meanwhile, longer dated contracts followed falling oil markets. A positive outlook for short-term gas supply helped to pressure down power prices during Tuesday’s session, with weaker fuel markets also a factor. The prompt was one of the few contracts to climb higher due to a reduced wind generation forecast for today and the remainder of the week.
Market Open Market Open
Strong LNG supply, an oversupplied system and weakening across commodity markets has helped to weigh on gas contracts across the curve this morning. However, some support has been offered by further outages at Norwegian facilities, potentially impacting imports to the UK. Power prices are largely bearish this morning, following weaker gas, coal and oil markets. Renewable levels are down as expected, with similar levels forecast for tomorrow, although milder weather has helped towards a small loss on the prompt.

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

Brent Summary

Brent Crude has moved down again this morning as the temporary halt to the vaccine rollout in some European countries has raised concerns that a return to normal demand levels may be delayed.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased, closing at 48.16ppt and £59.33/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 - 17-03-2021

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