18th December 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices continued to move higher yesterday, with near-curve contracts finding support from a short system, caused by increased demand levels. Meanwhile, the far-curve was pushed higher by stronger commodity markets, with coal, carbon and oil all displaying gains. Power prices displayed gains across the curve on Tuesday, with support provided by stronger carbon and feedstocks. Colder weather and weak renewables lifted demand levels but a healthier forecast for today and the rest of the week helped the prompt record a loss.
Market Open Market Open
The UK gas system is closer to balance this morning and near-curve gas prices have eased down slightly as a result. Oil and coal markets are marginally lower but this has been offset by a rise in coal and power, providing some support at the back of the curve. Power prices remain slightly bullish this morning as carbon contracts are up again. However, any increases are minimal as coal, gas and oil have moved down and feedstocks are stable-to-bearish. Wind levels have also improved which has resulted in another loss on the prompt.

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

Brent Summary

Brent 1st-nearby prices recorded another gain yesterday as traders remain optimistic about the US/ Chinese trade deal. OPEC production cuts are an on-going factor, in addition to a slowdown in US shale gas production.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 40.45ppt and £46.58/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 - 18-12-2019

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