|Gas prices were relatively unchanged during Tuesday’s session despite a sharp drop in oil prices and weaker coal. A cold outlook for December restricted downward movement at the front of the curve, while a balanced system offered little direction to the prompt.
|A rise in demand has offered support to prices at the front of the gas curve this morning, although front-month and front-quarter have been pressured down by a healthy demand outlook. Further out, prices have followed weaker coal and oil markets, ignoring a small rise in carbon.
|Power prices displayed minor gains yesterday despite weaker coal and oil markets. A rise in carbon offered some support to the far-curve, while the near-curve moved higher due to an expected rise in demand today, while lower renewable availability was also forecast.
|Power contracts are stable this morning with bearish resistance provided by lower coal, gas and oil prices. Supply/ demand is slightly weaker, as expected and the outlook is even less healthy tomorrow, helping the prompt record a strong increase.
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent 1st-nearby prices have dropped significantly and now trade below $62.5/b following Donald’s Trump’s comments in regards to Saudi Arabia’s responsiveness in regards to reducing oil prices; further downward pressure was also provided by weak financial markets.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial decreased – closing at 59.90ppt and £59.65/MWh, respectively.
Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.
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