27th August 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
UK gas markets were closed yesterday due to the Bank Holiday and were little changed on Friday due to stable fundamentals. Oil prices corrected downwards which helped to weigh on the far-curve, while an expected drop in wind levels offered support to prompt prices. Like gas, UK power markets ceased trading yesterday and any movement on Friday was minimal. Weak wind generation offered support to the prompt, while warmer weather was expected to lift cooling demand over the Bank holiday. Meanwhile, fuel markets ticked higher, helping towards small gains on the far-curve.
Market Open Market Open
The UK gas system is slightly undersupplied this morning as on-going maintenance at Norwegian facilities continue to impact supply. However, storage levels are above capacity and LNG send-outs are strong, helping near-curve prices move down. Power prices are trading slightly down this morning with direction provided by weaker gas, coal and carbon. Wind levels are expected to remain low tomorrow and the prompt has opened at a premium as a result, while above average temperatures will continue to lift demand.

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

Brent Summary

Brent 1st-nearby prices display a loss this morning as sentiment on the oil market is unchanged from the end of last week due to optimism in regards to US/ Chinese trade talks.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 44.58ppt and £49.85/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 - 27-08-2019

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