Energy Market Brief – October 2020All gas contracts rose in September, as prices found support from rising demand levels in GB and globally, alongside nine-month high LNG prices. Although, price growth was slower compared to previous months with continued uncertainty surrounding COVID-19.

All gas contracts rose in September, as prices found support from rising demand levels in GB and globally, alongside nine-month high LNG prices. Although, price growth was slower compared to previous months with continued uncertainty surrounding COVID-19.

Seasonal contracts from winter 20 to winter 22 rose 5.1% on average. The contract for delivery in winter 20 lifted 9.1% to average 38.14p/th, with the summer 21 contract rising comparatively, up 8.8% to 33.40p/th. The annual October 20 contracts increased 9.0% to 35.77p/th.

With the gas market remaining well supplied, healthy storage levels and stagnant oil prices, seasonal prices are not expected to see further significant gains.

Near-term and long-term power contracts experienced growth in parallel to their gas counterparts.

All seasonal power contracts up to and including winter 22 increased, following gas and carbon prices upwards. Similar to gas prices, growth stagnated alongside commodity market and economic uncertainty surrounding COVID-19.

The winter 20 contract gained 7.9% to average £50.90/MWh, with the summer 21 contract enjoyed similar upwards growth at 6.6% to average £43.78MW/h. The winter 22 experienced fewer gains but climbed 1.3% to average £50.98MW/h in September.