Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 2nd December 2016
Day-ahead contracts were up this week, with higher gas and power demand levels amid colder temperatures. The day-ahead baseload power contract rose 41.4% to £69.9/MWh. Day-ahead gas went up 2.4% to 48.7p/th. Contracts moved forward this week. Other near-term contracts declined, the new month-ahead (January) baseload power contract fell 11.6% to £60.4/MWh. The January 17 gas contract lost 0.8% to 47.6p/th, upon news that withdrawals from Rough gas storage site will restart no later than 9 December, with the prospect of increased supplies for the coming winter. Brent crude oil prices gained 2.5% this week to average $50.0/bl. On Thursday, Brent crude oil reached $54.3/bl, its highest price since July 2015, on the back of an OPEC agreement to cut production. API 2 coal prices increased 1.2% this week to average $66.2/t.EU ETS carbon prices lost 14.6% to average €4.6/t. Prices remain significantly lower than their level this time last year, which was €8.5/t. On Friday, prices dropped to a new ten-week low of €4.4/t.
Written By Graham PaulGraham Paul