Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 3rd July 2015
Weather was the major driver of short-term gas and power prices this week. The day-ahead gas contract slipped 0.1% to 43.7p/th as average temperatures in the UK jumped by 30.8% to 20.8°C and were 19.5% above the seasonal norm. Prices were supported at the end of the week by restricted supply from Norway, including planned maintenance at the giant Troll gas field. All other gas contracts along the forward curve increased, with the annual October 15 gas contract gaining 0.7% to 45.9p/th. Power contracts followed the trends seen in their gas counterparts. The annual October 15 power contract climbed 0.5% to £44.2/MWh. Day-ahead power was down 0.4% at £42.3/MWh with a week-on-week rise in wind generation of 38.9%. The power price fell despite higher demand. Peak power demand hit 38.3GW on Thursday, up 2GW on the week before. Brent crude oil lost 1.7% this week and averaged $62.6/bl as the Greek debt crisis and Iranian nuclear negotiations continue.
Written By Graham PaulGraham Paul