West Texas Intermediate, fell on Friday.
05 October 2020
A sharp decline in crude oil prices on Friday saw gas futures fall lower on the dayThe UK gas system enjoyed a comfortable supply-demand balance on Friday as Norwegian deliveries ramped up to seasonal levels with Langeled flowing 70MCM. A sharp decline in crude oil prices on Friday saw gas futures fall lower on the day to finish the week down by 3.5%. While such a weekly decline is not exceptional, it is perhaps unusual at the start of the winter season. Prices for the winter months fell by an average of 0.80p while seasonal contracts for summer 2021 and averaged slightly higher losses. Despite the well-supplied system on the day, prompt prices recorded gains of up to 0.85p.
Baseload power futures tracked gas prices lower again on FridayBaseload power futures tracked gas prices lower again on Friday with losses along the curve averaging £0.80/MWh. The new front month contract for November shed £1.05 to settle below £50.00/MWh. The downward trend was helped by improved French nuclear availability which was evidenced in increased UK imports from France in recent days. The day ahead contract gained £0.75/MWh, ending a week of highly volatile trading. Wind availability continues to drive that volatility and is likely to continue to do so. Storm Alex was predicted to pass over the weekend but the forecast for the full week is for steadier wind generation and the week ahead shed £1.00/MWh.
Crude oil prices fell for a fourth day in a row with Brent crude shedding $1.46 to settle at $39.27 a barrel. The global benchmark was down $2.65 a barrel week-on-week. The U.S. benchmark, West Texas Intermediate, fell by $1.60 on Friday as the general concern over demand recovery in the U.S. was amplified by news that President Trump has contracted the coronavirus. The market remains sceptical that OPEC members and other major producing countries will stick to cuts meant to avoid oversupply as the world grapples with the resurgence of the virus.
Crude oil prices fell for a fourth day in a row