Labor Day, is traditionally the end of the driving season and gasoline demand is expected to fall further this week.
07 September 2020
UK gas market ended the week with minor losses on FridayThe UK gas market ended the week with minor losses on Friday, but these were not near enough to outweigh the strong gains of Monday and Thursday. The result was a 5 to 13% rise on near futures contracts week-on-week. The front month recorded gains on 4 of the 5 days last week to settle above 30.00p on Friday, a 3.63p increase over the previous week’s closing level. The UK gas system was comfortably supplied on the day as demand remained well below the seasonal norm, but prompt gas prices gained between 1.00p and 1.20p none-the-less.
GB baseload power futures, with the exception of October and November, eased on Friday but remained higher week-on-week. The power market movement was generally in line with gas market movement on the day but failed to respond to sharp losses on both the oil and carbon markets on the day. On the prompt market, day ahead baseload increased again as wind generation levels were forecast lower for today. While overall power demand remains subdued, the impact of variable wind availability is increased as gas-fired generation becomes the swing provider.
The power market movement was generally in line with gas market