Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 25th July 2014
News of further sanctions on the Russian economy fed into energy prices this week, as both global commodities and GB power and gas prices reacted to increasing security of supply risks. The winter 14 gas contract was up 0.5% to 59.2p/th, a four-week high, while its power counterpart gained 1.2% to reach £49.2/MWh. Annual contracts also rose, with annual October 14 power up 0.9% to £49.4/MWh, 6% above its record low from two weeks ago. Rising GB power prices aided spreads, as the annual October 14 clean dark spread gained 2.8% to reach £17.9/MWh, a two-month high. A volatile week in the GB market was also influenced by rising commodity prices, as news of Russian sanctions sparked fears for the countries coal, gas and oil industries. Brent crude oil prices were 0.5% higher week-on-week at $107.5/bl, while API 2 coal prices rose 1.1% to hit a four-month high of $79.3/t.
Written By Graham PaulGraham Paul