Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 11th April 2014
Security of supply fears returned to influence the market this week as gas contracts surged higher on news that Russia may cut gas supplies to Ukraine. Day-ahead gas climbed 9.1% to 52.4p/th as NBP prices reacted despite high storage capacity and continued LNG deliveries. Long-term gas contracts rose across-the-board and fed into power contracts with annual October 14 power up 3.4% to £50.7/MWh. Day-ahead power increased with rises in gas, climbing 3.5% to £42.6/MWh despite higher wind output towards the end of the week. The annual October 14 clean spark spread dropped 18% to £3.3/MWh as gas prices rose faster than power, while the annual October 14 clean dark spread rose 7.3% to £18.7/MWh with increasing power prices and flat-lining coal. In commodities, Brent crude oil prices rose 0.5% to a weekly average of $106.9/bl on increased tensions between Russia and Ukraine. EU ETS carbon prices rebounded 6.2% after last week’s lows to reach €5.0/t with more credit withdrawals looming.
Written By Graham Paul