Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 23rd January 2015
Seasonal power and gas contracts hit record lows this week as further weaknesses in commodity markets pulled contracts lower. Long-term gas contracts were down across the board, with the annual April 15 gas contract falling 0.8% this week to 45.1p/th, its lowest recorded level. Its baseload power counterpart followed lower, dropping 0.2% to a record low of £43.8/MWh this week as further falls in coal prices continued to influence. Short-term contracts reversed last week’s gains, as issues at Norwegian gas fields were resolved. Day-ahead gas dipped 5.3% to 45.0p/th with storage levels falling to 65.8%. In commodities, API 2 coal prices continued on downward trends this week, averaging $58.9/t over the week, a fall of 2.6%. Brent crude oil prices posted weekly gains for the first time in five weeks, climbing 2.9% to average $48.8/bl. EU ETS carbon prices gained 2.7% this week to average €7.2/t despite a European Parliament committee rejecting early carbon market reforms.
Written By Graham PaulGraham Paul