|Gas prices increased across the near curve on Monday with support provided by unplanned outages and weak renewable power which will lift CCGT demand later in the week. The trend was also bullish further along the curve as coal, carbon and oil markets moved higher.
|Power contracts followed their gas counterparts and added to their price, with weak renewables helping the prompt record a strong gain. Warm weather is expected to lift cooling demand later in the week, while rising fuel markets contributed to upward movement at the back of the curve.
|The UK gas system opened 7.9mcm long this morning but movement across the near curve remains bullish as gas-fired power generation has increased and Norwegian outages continue to restrict supply. Meanwhile, prices at the back of the curve continue to find support from an increase in Brent.
|Renewable power is expected to improve tomorrow, helping the prompt record a loss, however, the outlook for wind generation is rather weak for the coming days. Gains on the gas market have helped the majority of near-curve power prices move higher, while stronger coal and oil provides bullish sentiment further out.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices display a rebound this morning and trade around $74.5/b as there are doubts whether an agreement can be reached by OPEC members in regards to increasing output. However, the overall context remains bearish due to the on-going trade dispute between the US and China.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased – closing at 55.70ppt and £54.30/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
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