August Markets Update

Gas market trends

Gas supplies were tighter in July as only five LNG tankers arrived at UK terminals.
Day-ahead gas prices increased for the first time since September 2018, rising 7.1% to average 30.0p/th in July. The contract peaked at 38.4p/th.
August 19 gas rose 4.2% to average 29.8p/th.
All seasonal gas contracts rose and were up 2.2% on average.
Winter 19 gas increased 0.3% to average 51.5p/th.
Annual October 19 gas climbed 1.9% to average 48.8p/th, 7.5% lower than in July last year.

Day-ahead power rose by 6.2% to average £41.9/MWh in July. The contract peaked mid-month, hitting £48.8/MWh.
August 19 power gained 4.8% to average £41.1/MWh.
All seasonal power contracts moved higher, up 3.2% on average.
Winter 19 power was 2.2% higher at £56.9/MWh.
The annual October 19 power contract went up 3.4% to average £53.6/MWh.

Brent crude oil was up 2.8% to average $64.7/bl as a result og rowing tension in the Middle East. Prices were also affected by growing concerns of weaker global economic growth and a potential reducing in demand.

PI 2 coal prices rose 6.3%, reversing this year’s downwards trends. Coal prices rose above $71.0/t during the heatwave in mid-July as demand picked up due to forecasts of higher cooling demand.

EU ETS carbon prices rose for the first time in three months, gaining 11.2%.
Weaker wind ouput, higher cooling demand during record-breaking temperatures, among other causes, led to an increase in conventional power generation which had a knock-on effect on demand for allowances.