On the oil market, Brent crude has eased in overnight trading on Asian markets
28 September 2020
Following two days of above normal demand, demand on the UK gas system fell back on FridayFollowing two days of above normal demand due to unseasonably cold weather, demand on the UK gas system fell back on Friday. Wind generation displaced some gas-fired power generation and commercial demand fell off heading into the weekend. The system was finely balanced in the morning but as demand fell off through the day, line-pack was forecast 7MCM long at close of business. Movement on the prompt gas market was varied with the day ahead gaining just 0.05p but the week ahead contract for this week was up by 0.75p. Near futures contracts recorded gains averaging 0.52p.
The prompt power market remained volatile on FridayBaseload power futures tracked gas prices higher lower on Friday, ignoring further weakness on the carbon market. The front month recorded the biggest gain, adding £0.50 to settle at £42.90/MWh. Carbon prices fell further on the day with EU ETS unit prices shedding 60 cent and more to settle at a 5-week low. The prompt power market remained volatile on Friday with the day ahead contract gaining £8.50 to £47.00/MWh. As demand is forecast to exceed the seasonal norm today. The full week ahead contract for this week was down fractionally however as wind generation levels are forecast to pick up this week.
Crude oil finished the week on softer note with Brent crude easing by 15 cents to $41.92 a barrel. Despite recording minor gains midweek, the global benchmark finished $1.23 lower week-on-week. The market was mainly influenced by the broader stock market and currency movement over the past week, a strengthening dollar maintaining downward pressure against any hopes of increasing demand. The trading range was limited to 63 cents over the week with Brent crude breaking above $42.00 a barrel only once. Carbon prices fell further on the day with EU ETS unit prices shedding 60 cent and more to settle at a 5-week low.
Crude oil finished the week on softer note with Brent crude easing by 15 cents