Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 21st April 2017
This week, lower temperatures raised power and gas demand, leading to higher near-term power and gas prices. In contrast, seasonal gas and baseload power prices experienced mixed movements. Day-ahead gas climbed 1.5% week-on-week to 39.5p/th, amid higher than seasonal normal demand owing to lower temperatures. The month-ahead contract rose 2.4% to 39.7p/th. Seasonal gas contracts declined by 0.2% on average. The day-ahead power contract went up 3.7% to £40.8/MWh, with higher demand forecast for Monday. Near-term power prices followed the gas market higher, also owing to higher demand levels amid lower temperatures. In addition, forecast wind generation levels were lower this week, in comparison to last week. The month-ahead contract (May) rose 0.7% to £40.3/MWh. Seasonal baseload power contracts experienced mixed movements this week, but on average lost 0.3%. On average, Brent crude oil prices went down 2.8% to $54.4/bl. The commodity ended the week at $53.0/bl, a result of concerns that OPEC-led production cuts will not reduce a global oversupply of oil. API 2 coal prices gained 1.3% to average $66.0/t. On Friday, API 2 coal lifted to $67.0/t, a two-week high. EU ETS carbon prices slipped 0.8% this week to average €4.9/t.
Written By Graham PaulGraham Paul