Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 21st November 2014
Power contracts rose across the board this week, following increases in demand and rises in gas and coal. The spot market was most reactive, as day-ahead power climbed 4% to £49.9/MWh. Prices followed higher along the curve, summer 15 power climbed 1.7% to a three-week high of £48.3/MWh. Rising gas prices influenced power contracts as day-ahead gas rose 4.9% to an eight-month high of 56.1p/th. The spot gas market climbed following outages at storage withdrawals sites and increases in daily gas demand, which hit its highest level in eight months. Seasonal gas contracts followed higher with the annual April 15 gas contract rising 1.8% to average 56.0p/th. Rising coal and carbon prices were factored in to GB power and gas markets. Annual API 2 coal prices gained 1.1% to average $72.2/t, while EU ETS carbon permits rose to an eight-month of €7.0/t. In contrast, month-ahead Brent crude oil fell 2.8% this week to average $78.8/bl. The market continued to be affected by high levels of supply.
Written By Graham PaulGraham Paul