Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th February 2014
Long-term power prices returned to downward trends this week, wiping out gains seen last Friday, as gas and coal prices saw sharp falls. Annual April 14 baseload power decreased 1.8% to £49.0/MWh. Short-term power prices rose this week with falling wind output and unplanned nuclear outages. Day-ahead power rose 4.7% to £44.8/MWh. In contrast gas prices fell with continuing low demand and increased LNG supply. Winter gas demand is now at its lowest level in 7 years. Day-ahead gas dropped 2.0% to an 18-month low of 56.2p/th on Friday. The annual April 14 clean spark spread fell 8% to £2.6/MWh as annual power prices fell. The annual April 14 clean dark spread dropped 5% to £16.4/MWh as power fell faster than coal. Coal prices are now at their lowest level in 4 years. Month-ahead Brent crude oil dipped 0.1% to a weekly average of $109.6/bl with Libyan supply disruptions offset by weak economic data from China. Carbon prices fell 1.6% over the week from a 14-month high of €7.2/t on Monday.
Written By Graham Paul