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

Gas Power
Market Close Market Close
Near-curve gas prices displayed losses on Friday as temperatures were above the seasonal norm, reducing demand levels in the UK. Coal also moved down which provided additional bearish pressure further along the curve. Power prices followed the gas market and traded down on Friday, with weakening coal and carbon also contributing factors. Renewable levels were stable which helped the prompt decrease, with a milder weather outlook helped to limit upward movement on the near-curve.
Market Open Market Open
The UK gas system is oversupplied this morning as Norwegian flows have increased, helping to offset a rise in demand. Storage levels are at full capacity and temperatures are expected to be above the seasonal norm for the start of November. This, combined with weaker coal and carbon has helped towards more losses along the gas curve this morning. Gas, coal, carbon and feedstocks have all moved down this morning which applied bearish pressure to power contracts at the start of the session. Fundamentals are little changed as improved solar generation has made up for a drop in wind availability.

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

Brent Summary

Brent 1st-nearby prices have eased this morning following gains on Friday and currently trade just above $62/b. Traders now have an eye on the upcoming OPEC meeting in which nations are likely to agree to further production cuts.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 45.40ppt and £50.03/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 - 28-10-2019

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