22nd December 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Sentiment was practically unchanged from last week with an expected drop in temperatures and on-going negotiations between the UK and the EU helping towards gains across the curve. Power followed gas and moved higher on Monday, with Brexit the main talking point. Wind levels were also forecast to drop by more than half today, combined with colder temperatures, lifting the prompt significantly.
Market Open Market Open
UK prices are mixed this morning, with increases at the front of the curve and stability further out. Brexit and the Prime Minster’s stance that the UK will still consider ‘no-deal’ to be an option, provides the support on the near curve. Power prices are largely bullish, pushed higher by a colder weather outlook, weaker renewables and the on-going Brexit saga. Longer dated contracts show little movement, however, with coal and oil markets moving in different directions.

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

Brent Summary

Brent Crude trades below $51/b as fresh COVID-19 restrictions and a wide-scale travel ban on the UK has reduced demand forecasts for oil.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 44.17ppt and £52.90/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 - 22-12-2020

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