Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 8th August 2014
Most power and gas prices increased this week as a result of concerns over tensions between Europe and Russia and news the US will use airstrikes against militants in Iraq. Annual October 14 gas climbed 2.3% to 57.6p/th, helping to push its power counterpart up 1.4% to £49.8/MWh. In contrast, short-term contracts were down on good LNG supplies and rising wind forecasts; day-ahead power fell 1.7% week-on-week to £35.7/MWh. The annual October 14 clean dark spread gained 3.7% to reach £17.4/MWh, but the annual October 14 clean spark spread lost 2% to £4.7/MWh as gas prices rose further than power prices. Commodities were also bullish, with coal prices rising 0.4% to average $79.3/t and EU ETS carbon prices climbing 0.5% to a weekly average of €6.2/t. Despite the impacts of Russian sanctions, month-ahead Brent crude oil prices dropped 1.7% to a weekly average of $105.3/bl. However news on Friday of US intentions in Iraq pushed the price up $1.9/bl.
Written By Graham PaulGraham Paul