Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 26th April 2013
Annual power prices saw the continuation of a downward trend as a result of lower carbon and gas prices on the back of decreasing demand due to higher temperatures. Annual power fell 0.5% to an eight-month low of £51.5/MWh and annual gas dropped 0.7% to 67.6p/th. The annual baseload power price is now 2% lower than the March 2013 average and 2% lower than the 2012 average of £52.9/MWh. Day-ahead prices were mixed this week, gas fell 1.4% to 66.1p/th while power increased 3% to £47.5/MWh as wind power output decreased. Gas generation was more profitable this week as a result of lower fuel prices, the annual clean spark spread rose 7% to £4.0/MWh. The annual clean dark spread increased as a result of stable coal prices, the spread climbed 0.2% to £25.8/MWh. The clean dark spread is now at a £21.8/MWh premium to the clean spark spread. Carbon prices dropped to a weekly average of €3.0/t as prices continued to fall as a result of the EU Parliament vote against back-loading proposals to support the value of carbon. Brent crude oil climbed back above $100/bl amid signs of growing demand in the US. The month-ahead Brent crude oil contract rose 1.2% to a weekly average of $100.9/bl.
Energy Wholesale Market Review Week Ending 26th April 2013.
Energy Wholesale Market Review Week Ending 19th April 2013
A sudden slump in carbon and oil prices has pulled down power prices this week. Annual power fell 2.1% to a three-week low of £52.2/MWh and annual gas dropped 1% to 68.1/th. The annual baseload power price is now 3% lower than the March 2013 average and 1% lower than the 2012 average of £52.9/MWh. Day-ahead prices were also down this week, gas fell 1.5% to 67.0p/th while power dropped 9.6% to £53.5/MWh as wind power output topped 5GW during the week. Gas generation was less profitable this week as a result of lower power prices, the annual clean spark spread fell 10% to £2.8/MWh. The annual clean dark spread slipped as a result of lower power prices, the spread dropped 0.5% to £24.2/MWh. The clean dark spread is now at a £21.6/MWh premium to the clean spark spread. Carbon prices tumbled to a record low of €2.7/t as the EU parliament voted against back-loading proposals intended to support the value of carbon. Brent crude oil dropped below $100/bl for the first time since July 2012 as poor economic data from China and the US stoked concerns about low global oil demand growth. The month-ahead Brent crude oil contract fell 5.1% to a weekly average of $99.8/bl.
Energy Wholesale Market Review Week Ending 19th April 2013.
Energy Wholesale Market Review Week Ending 12th April 2013
Power and gas prices have decreased this week as concerns about supply security have faded and oil prices dropped. Annual power fell 1.2% to a three-week low of £53.3/MWh and annual gas dropped 1.1% to 68.8/th. Day-ahead power prices dropped as low-carbon generation increased and demand fell. The day-ahead baseload power contract dropped 14.3% to a monthly low of £51.4/MWh, while the day-ahead gas price slumped 17% to 68.0p/th. Gas generation was more profitable this week as a result of lower gas prices, the annual clean spark spread rose 5% to £3.1/MWh. The annual clean dark spread slipped as a result of lower power prices, the spread dropped 1% to £24.3/MWh. The clean dark spread is now at a £21.2/MWh premium to the clean spark spread. Our clean spreads are now inclusive of carbon price support, which is £0.9/MWh for gas and £1.6/MWh for coal. Carbon prices have lost 4% week-on-week over worries about the upcoming vote on carbon support measures. Month-ahead Brent crude oil fell 3.4% to a weekly average of $105.1/bl on concerns over lower oil demand.
Energy Wholesale Market Review Week Ending 12th April 2013.
Energy Wholesale Market Review Week Ending 5th April 2013
Most prices remain high this week as demand is still elevated despite a slight improvement in the weather. The day-ahead baseload power contract dropped 9% to £60.0/MWh, while the day-ahead gas price climbed 14% to 81.5p/th. Rough gas storage levels are now at a recent low of 0.3% as storage is still being relied upon to provide supplies. Annual contracts continued upwards as concerns remained about the long-term supply outlook. Annual power rose 0.6% to £54.2/MWh and annual gas climbed 0.4% to 69.6/th. Gas generation was more profitable this week as a result of higher power prices, the annual clean spark spread rose 4% to £4/MWh. The annual clean dark spread benefitted from higher power prices and climbed 0.3% to £25.9/MWh. The clean dark spread is now at a £22.0/MWh premium to the clean spark spread. Carbon prices have gained 6% week-on-week as the market grew more optimistic about EU back-loading measures. Month-ahead Brent crude oil fell to $106.3/bl by the end of the week as a result of eurozone concerns and lower oil demand in the US.
Energy Wholesale Market Review Week Ending 5th April 2013.
Written By Graham Paul
