Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 24th February 2017
The majority of near-term gas and power contracts experienced losses this week, driven by milder temperatures. In contrast, seasonal gas and power contracts mostly gained. Day-ahead gas lost 2.7% week-on-week to 46.3p/th, amid an oversupplied system on Friday. The month-ahead contract slipped 4.6% to 46.1p/th. In contrast, most seasonal gas contracts experienced slight gains. The only exception was summer 17 gas, which lost 0.4% to 43.5p/th, with lower than expected gas injection demand, amid injection outages at Rough gas storage site, leading to higher system supply levels. Most near-term baseload power contracts decreased this week, following the gas market downwards and owing to lower power demand due to milder temperatures. The only exception was day-ahead baseload power, which week-on-week gained 0.3% to £46.4/MWh. Prices dipped midweek however as a result of high levels of wind generation. The month-ahead contract lost 1.8% to £46.1/MWh. On average, Brent crude oil prices were little changed this week, lifting 0.7% to average $56.3/bl. Week-on-week prices rose by 1.6% to $56.3/bl. On Tuesday, prices reached a two-week high of $56.9/bl. Prices were supported by optimism regarding the success of OPEC-led production cuts and growing Asian demand. API 2 coal prices went up 2.9% to average $68.1/t. Week-on-week, prices gained 2.0% to $68.6/t. On Monday, prices reached a three-month high of $69.2/t. EU ETS carbon prices gained 2.0% this week to average €5.1/t. Week-on-week prices rose 9.8% to €5.4/t.
Written By Graham PaulGraham Paul