Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 17th October 2014
Gas and power prices fell this week in both long and short-term markets. Long-term contracts were pulled down by continuing decreases in coal and oil as a result of waning demand. Compared to last week, the annual April 15 gas contract fell 1.0% to 57.2p/th. On the day-ahead market, prices continued to fall on the back of rising imports and the expectation of warmer weather towards the end of the week. Day-ahead baseload power dipped 3.2% to £43.7/MWh. Clean spark spreads and clean dark spreads fell this week as gas and coal prices fell faster than power. Clean spark spreads dropped 0.8% to £6.6/MWh while clean dark spread fell 1.4% to £19.9/MWh. Month-ahead Brent crude oil dropped to a four year low of $85.8/bl, pulled down by the global supply glut and an indication from Opec that it is unlikely to reduce production. In contrast to the falls, carbon prices increased to €6.1/t on expectations that EU leaders may agree on the content of the EU 2030 climate and energy framework at the end of October.
Written By Graham PaulGraham Paul