Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 19th August 2016
Most gas and power contracts declined this week. On the near-curve gas contracts showed notable reductions, with day-ahead gas dropping 11.6% to 28.3p/th, the lowest price since April this year. The fall in price occurred as domestic supplies of gas ramped up following the end of maintenance at the Britannia gas field and Apache’s SAGE terminal. Day-ahead power went down 1.7% week-on-week to £37.4/MWh. Further out, seasonal gas contracts lifted 0.6% on average, as a boost in oil prices supported the NBP market. The only seasonal contract to experience a decline was winter 16, which fell just 0.8% to 42.0p/th. Meanwhile, all seasonal baseload and peak power contracts gained. Winter 16 peak power lifted 0.8% to £56.6/MWh. The contract is now £10.3/MWh higher than its baseload counterpart, owing to concerns arounds supply margins for the coming winter. Brent crude oil prices climbed 9.0% this week to average $49.0/bl, an eight-week high, on the prospect that oil exporters will discuss ways to support the oversupplied market.
Written By Graham PaulGraham Paul