Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 12th December 2014
Gas and power prices have fallen this week owing to high gas supplies and continued falls in Brent crude oil. LNG send-out and further deliveries helped the system remain comfortably supplied as month-ahead gas fell 2.3% to 54.3p/th. The Annual April 15 gas contract fell 1.2% to 53.9p/th, its lowest recorded level as falling oil prices continued to weigh on prices. Annual April 15 power hit a record low of £49.6/MWh following the falls in gas. The annual April 15 clean spark spread gained 4% this week to reach £7.1/MWh a six-week high as annual gas prices fell faster than power. Brent crude oil fell to $63/bl, a new five-year low as OPEC reduced its estimate for 2015 demand and the Saudi Arabian oil minister suggested that there were no plans to cut production. Coal prices continued downward trends, declining 0.9% to average $70.4/t. Production cuts announced in Australia were not enough to curb oversupply in the market, as coal production has continued to increase elsewhere. Despite momentum on market reform, carbon prices dropped 3.4% to average €6.7/t.
Written By Graham PaulGraham Paul