26th November 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices strengthened across the curve yesterday, dictated by high demand for gas-fired power, a colder weather outlook and a recovering oil market. Coal and carbon markets also continued to strengthen, adding to the bullish sentiment. Power followed gas and displayed gains across the curve yesterday, while wind levels were forecast to plummet today, resulting in a significant increase on the prompt. An expected drop in temperatures also offered support, in addition to rising coal and oil.
Market Open Market Open
Gas prices are generally supportive this morning as colder weather is expected to push demand levels to 10mcm above the seasonal norm. Wind levels are set to improve slightly tomorrow but this has had minimal impact on the prompt which displays a very small loss, while bullish coal and oil supports the far curve. Wind levels are very low this morning, while hydro production has also decreased resulting in a strong reliance on gas-fired power. Improved renewables are expected tomorrow which has helped the prompt record a loss, while the rest of the curve is largely bullish, following rising fuel markets.

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

Brent Summary

Brent Crude nears $49/b as the latest EIA report showed a decline in US production, although demand remains worryingly low. In other news, an oil tanker was also attacked near a Saudi terminal in the Red Sea, raising further concerns about transit near Yemen.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas decreased, while commercial electricity moved higher, closing at 37.12ppt and £46.90/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 - 26-11-2020

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