18th October 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Movement along the gas curve varied on Tuesday, with a well-supplied system and mild weather applying bearish pressure to some contracts on the near-curve. However, a drop in wind generation today was expected to lift CCGT demand, restricting some of the losses. Meanwhile, weaker coal prices contributed to small decreases at the back of the curve. Wind and solar levels were forecast to drop this morning resulting in a stronger prompt, with the gains filtering through to the rest of the near-curve. Impending safety checks at French power plants continue to provide support, while Brent continued to climb higher.
Market Close Market Close
Fundamentals are largely unchanged this morning with the supply/demand picture expected to remain stable over the next couple of days. A drop in renewable generation has lifted CCGT demand as expected, while French nuclear availability is also limited, resulting in a stable outlook. Further along the curve, oil prices have helped to restrict some of the downward movement. Mixed changes can be seen on the gas curve this morning with the prompt recording a healthy loss because of a mild weather and improved wind forecast for tomorrow. Price drops can also be seen at the back of the curve due to weaker coal, while contracts in between have found some support from the French nuclear situation.

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

Brent Summary

Brent prices continue to display an upward trend this morning and currently sit just below $58.4/b. Support has been provided by tension in the Middle East and weaker crude stock figures.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased slightly, while commercial electricity recorded a small gain – closing at 46.77ppt and £45.96/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 - 18-10-2017

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