Energy Market Report - Sep19
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Energy Market ReportsEnergy Market Report - Sep19

Energy Market Report - Sep19

Chris Hurcombe

by Chris Hurcombe 03 September 2019

Report Summary:

Winter 19 gas hits two-year low, power follows

key-market-indicatorsEnergy Market Brief - September 2019

Day-ahead gas prices fell 5.6% to average 28.3p/th in August. The contract dropped to 26.0p/th on 8 August, the lowest since June. Prices have been pressured by lower demand as temperatures were above seasonal normal levels throughout most of the month. September 19 gas also dropped, down 2.3% to average 31.3p/th, as the scheduled arrival of two LNG tankers early in September and high (at 97% full) gas storage levels offset concerns of a tighter market during planned maintenance in Norway. Seasonal gas contracts reversed the previous month’s gains, falling 2.3% on average. Winter 19 gas was 5.5% lower, averaging 48.7p/th, hitting a two-year low of 45.9p/th on 28 August.

Day-ahead power dropped 5.3% to average £39.6/MWh in August. The contract fell to £35.6/MWh on 16 August, the lowest since 31 May as wind output overtook CCGT output in the generation mix. September 19 power fell 2.1% to average £42.5/MWh, dropping as low as £39.9/MWh on 27 August. All seasonal power contracts also moved lower, down 2.7% on average, with winter 19 power declining 5.0% to £54.1/MWh. The winter 19 power contract hit a 15-month low of £51.5/MWh on 27 August.