28th August 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices eased down yesterday following strong gains in previous sessions. Losses were displayed across the curve, with coal and power markets also correcting downward. An expected drop in demand today also weighed on the prompt, despite a short system. Power prices traded lower during Thursday’s session, following weakening on the gas curve. An expected rise in wind generation helped the prompt record a heavy loss, while commodity markets offered little in the way of support.
Market Open Market Open
The system is slightly oversupplied this morning despite increased heating demand, as improved wind levels have reduced gas-fired power generation. Contracts have opened slightly bullish, with a higher demand forecast and stronger commodities providing support. Power prices have increased at the front of the curve as renewable levels are set to fall and demand for gas is expected to grow next week as temperatures are below the seasonal norm. Meanwhile, EDF has announced plans to close its Hunterston B nuclear power plant which has supported the winter contract.

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

Brent Summary

Brent 1st-nearby prices have dropped below $45.1/b as Hurricane Laura is expected to pass through the south of the US without leaving any lasting damage to oil facilities. This week’s shutdown in the region has impacted production by almost 2 million barrels per day.

1-year forward prices

Market close data has revealed that the 1-year forward price for commercial gas & commercial electricity increased, closing at 36.35ppt and £48.21/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 - 28-08-2020

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