21st November 2018 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
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.
Market Open Market Open
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 Summary

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.

Click graph to enlarge

energy price graph - 21-11-2018