Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 13th November 2015
High supply and low demand were the main drivers this week, as power contracts continued to follow commodity prices lower. Falling oil prices and a comfortable supply outlook pulled seasonal gas contracts down to record lows, with summer 16 gas slipping 4.5% to 34.0p/th. Seasonal power contracts followed lower, with summer 16 power trimming 3.3% to £36.8/MWh. Meanwhile, mild temperatures (37.8% above the seasonal norm) and significantly higher wind output (up 191.2% week-on-week) brought day-ahead gas down 4.1% to 34.2p/th, and hit a five-year low in the week. Day-ahead power slid 0.7% to £35.8/MWh, reaching £35.0/MWh on Thursday, the lowest price since July 2014. Brent crude oil fell 5.2% to average $46.8/bl, hitting a two-and-a-half month low of $43.8/bl on Friday with OECD crude inventory levels at a record of almost three billion barrels. API 2 coal prices fell 3.3% to average $46.7/t, and dropped to a fresh low of $45.8/t on Friday.
Written By Graham PaulGraham Paul