Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 15th July 2016
Most power and gas contracts moved lower again this week. An exception was day-ahead power which jumped 9.7% to £39.4/MWh, amid a failure with the IFA interconnector which reduced flows and limited supplies. Day-ahead gas decreased 2.7% to 33.0p/th, despite a rise in national system gas demand and a decrease in temperatures. On average seasonal gas contracts declined 2.5%, with winter 16 gas down 2.6% to 43.3p/th. Week-on-week Brent crude oil rose 0.8% to $46.9/bl, however on average prices lost 3.6% to average $47.0/bl. On Monday prices dropped to $46.3/bl, a new two-month low, after US producers increased the number of active rigs to the highest since April. API 2 coal experienced gains, up 1.7% to $59.0/t. Week-on-week EU ETS carbon climbed 4.5% to €4.7/t, but on average carbon prices fell 0.5% to €4.7/t. Carbon prices have fallen almost 20% since the UK voted to leave the EU on 23 June on fears the country, could also leave the bloc's Emission Trading System.
Written By Graham PaulGraham Paul