Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 22nd January 2016
Falling commodity prices continued to drag seasonal gas and power contracts down this week. Seasonal gas contracts dropped on the back of lower oil prices, with summer 16 gas down 1.6% to 28.2p/th. Power contracts followed their gas counterparts, with summer 16 power slipping 0.9% to £32.1/MWh. Seasonal gas and power contracts are currently at their lowest levels since 2007. Spot gas and power contracts also fell. Day-ahead gas dropped 7.7% to 29.8p/th, hitting a five-year low of 29.3p/th on Thursday, as increased supplies outweighed higher demand levels. Day-ahead power slid 17.4% to £33.3/MWh, despite hitting a nine-month high of £48.40/MWh on Monday. Brent crude oil trimmed 6.7% to average $29.1/bl as international sanctions on Iran were lifted last weekend, with the country insisting they will boost oil output levels immediately. EU ETS carbon plunged 9.1% to average €6.5/t, hitting a 15-month low of €6.0/t on Thursday.
Written By Graham PaulGraham Paul