28th January 2019 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices decreased on Friday as supply levels were healthy, with strong flows into the continent from Norway and Russia. Dutch production and LNG send-outs were also comfortable, while weaker demand was expected over the weekend. However, a rise in coal and oil limited losses on the far-curve. Near-curve power contracts moved higher at the end of last week despite a milder weather outlook. Healthy gas supply limited some of the upward movement, while stronger Brent and coal offered additional bullish pressure at the back of the curve.
Market Open Market Open
The UK gas system is balanced this morning as storage withdrawals and LNG send-outs have decreased due to lower demand. Gas prices are stable-to-bearish, although support has been provided by a rise in coal and carbon. Power prices at the front of the curve have eased down on the back of milder weather and an increase in renewable generation. Meanwhile, an announcement that a 13GWh coal-fired power plant in Germany is set to close by 2022 has supported longer dated contracts.

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

Brent Summary

Brent 1st-nearby prices have moved higher but are range-bound below $62/b due to contrasting fundamentals.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 55.30ppt and £57.93/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 - 28-01-2019

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