Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 30th September 2016
This week, all gas and power contracts and commodities experienced price gains. Day-ahead gas went up 4.4% to 35.5p/th, reaching a two-month high on Thursday of 35.9p/th. Day-ahead power jumped 26.7% to £51.0/MWh, despite lower demand this week. Winter 16 power climbed 8.7% to £51.4/MWh, The contract followed its gas counterpart higher. On Thursday, the winter 16 power contract experienced the largest single day gain in over eight years, upon reports that France may extend nuclear outages. On average Brent crude oil prices rose 1.0% this week to average $47.1/bl. Nervous trade drove volatility leading up to the meeting of OPEC and non-OPEC members in Algeria this week. As a result, OPEC members agreed on a preliminary outline to cut its collective output, which caused prices to edge higher. On average API 2 coal prices gained 5.6% this week to average $62.5/t, On 29 September API 2 coal increased $3.4/t to $64.8/t, the highest price since January 2015. On Wednesday, EU ETS carbon rose €0.3/t to €5.0/t, a ten-week high.
Written By Graham PaulGraham Paul