18th September 2019 | Posted by: Natalie Ormrod | Market Analysis

Gas Power
Market Close Market Close
Gas contracts across the curve corrected yesterday, as Brent crude traded lower following the supply shock from the drone attacks in Saudi Arabia. Weaker coal and carbon markets also impacted on Gas prices. Power prices tracked the falling NBP yesterday as the market reacted to the news that Saudi production should be mostly back online by the end of September.
Market Open Market Open
The market has seen yesterday’s weakness resume, linked to news that the Framatome reactor may not require immediate maintenance, easing fears of the French nuclear fleet being weakened for Winter. Yearly planned maintenance is ongoing at some major facilities and terminals including Easington, resulting in Langeled nominating zero flows today. Power contracts reversed yesterday’s gains this morning, as the losses within the NBP weighed on the market; however, the potential outages in the French nuclear fleet may see prices rise. Weaker trading in the wider energy complex is also having a negative impact.

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

Brent Summary

Brent 1st-nearby prices corrected this morning and trade around $64.55/b. There is mixed sentiment however, as future bullish pressure is anticipated from increased US/Saudi-Iran tensions and Saudi production returning earlier than expected may bring the market back to oversupply in October.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 46.72ppt and £53.15/MWh, respectively.

Click to enlarge graph

energy price graph - 18-09-2020

Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.

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