Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 20th May 2016
Day-ahead gas fell 2.9% to 30.1p/th this week, following an increase in LNG imports and a stronger pound. Winter 16 gas moved in the opposite direction to oil markets, dropping 1.6% to 35.8p/th. Day-ahead baseload power slipped 4.6% to £34.2/MWh following its gas counterpart lower. Winter 16 power reduced 0.7% to £40.1/MWh, following its gas counterpart lower. Brent crude oil gained 2.3% to $48.8/bl. The commodity experienced losses during the week as Iranian output soared. However, continued supply disruptions in Canada and Nigeria, as well as a drop in US production, supported prices. API 2 coal lifted 2.6% to $47.0/t. The price rise came in spite of weaker global demand for thermal coal. EU ETS carbon boosted 3.7% to €6.0/t, following other commodities higher. The French government announced on Tuesday 17 May that the French government will introduce a domestic carbon price floor of at least €30 per tonne of CO2.
Written By Graham PaulGraham Paul