24th February 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas contracts moved down during Friday’s session, finding direction from weaker oil markets and an oversupplied system. Strong winds prevented the arrival of new LNG send-outs but also reduced demand, while flows were almost unchanged. Power prices were pressured down by a drop in gas and oil on Friday, while strong wind generation helped to weigh on the prompt. However, an expected drop in temperatures at the start of this week limited downward movement on the near-curve.
Market Open Market Open
The UK gas system has fallen short this morning on the back of colder temperatures, while flows are close to Friday’s levels. Commodity markets have provided minimal direction, although oil has rebounded slightly. Movement along the gas-curve is stable-to-bullish as a result. Wind levels are expected to fall as the week progresses and temperatures are cooler, offering support to the prompt this morning. Economic indicators are bearish at present due to new developments regarding the Coronavirus, limiting any gains along the power curve.

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

Brent Summary

Brent 1st-nearby prices moved down over the weekend but show a slight, technical rebound this morning. Bullish sentiment was provided by news of new cases of the Coronavirus being reported in South Korea and Italy which could result in further prevention measures being taken.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 29.38ppt and £38.85/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 - 24-02-2020

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