Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 31st May 2013
Annual power and gas prices were fairly flat this week as a result of conflicting factors; concerns about supplies pushing up gas prices, and an oversupplied coal market. Annual power dipped 0.1% to £52.0/MWh and annual gas climbed 0.4% to 68.1p/th. The annual baseload power price is now flat compared to the May 2012 average and 2% lower than the 2012 average of £52.9/MWh. Gas generation was less profitable this week as the carbon prices rose, the annual clean spark spread decreased 16% to £2.4/MWh. The annual clean dark spread was also pushed lower by carbon. The spread fell 0.9% to £23.9/MWh. The clean dark spread is now at a £21.6/MWh premium to the clean spark spread. Oil prices dipped slightly this week as Opec oil production volumes have increased to six-month highs. The month-ahead Brent crude oil contract fell 0.7% to a weekly average of $102.64/bl. On average coal prices remained flat, however the annual contract had fallen to $90.6/t by 31 May, close to a four-month low.
Energy Wholesale Market Review Week Ending 31st May 2013.
Energy Wholesale Market Review Week Ending 24th May 2013
Scheduled maintenance at nuclear power stations and Norwegian gas fields pushed up prices on the GB energy market this week. Annual power rose 0.5% to £52.0/MWh and annual gas climbed 0.7% to 67.9p/th. The annual baseload power price is now flat compared to the May 2012 average and 2% lower than the 2012 average of £52.9/MWh. Gas generation was more profitable this week as the gains in power prices outstripped gas prices, the annual clean spark spread increased 2% to £2.8/MWh. The annual clean dark spread increased as a result of low coal prices. The spread rose 0.3% to £24/MWh. The clean dark spread is now at a £21.5/MWh premium to the clean spark spread. Concerns about weak economic performance in the US, China and Japan pushed oil down to a two-week low of $101.6/bl this week, while coal market oversupply pushed coal prices down to a four-month low of $91.0/t. Carbon prices remained stable at a weekly average of €3.5/t as demand remained flat.
Energy Wholesale Market Review Week Ending 24th May 2013.
Energy Wholesale Market Review Week Ending 17th May 2013
Prices have continued to recover this week as temperatures dropped below seasonal norms and there were some concerns about continental gas supplies following an outage in Norway. Annual power rose 0.5% to £51.8/MWh and annual gas climbed 0.7% to 67.4p/th. The annual baseload power price is now flat compared to the May 2012 average and 2% lower than the 2012 average of £52.9/MWh. Gas generation was less profitable this week as the gains in gas prices outstripped power prices, the annual clean spark spread increased 4% to £2.8/MWh. In contrast, the annual clean dark spread increased following the fall in coal prices. The spread rose 2.5% to £24/MWh. The clean dark spread is now at a £21.2/MWh premium to the clean spark spread. The International Energy Agency predicted rising US oil volumes would make the market oversupplied over the next five years, this pushed oil prices down 1% to a weekly average of $103.1/bl although gains were capped by concerns about tensions in the Middle East. Coal prices fell to a four-month low of $90.4/t this week as the market remains oversupplied.
Energy Wholesale Market Review Week Ending 17th May 2013.
Energy Wholesale Market Review Week Ending 10th May 2013
Annual power prices fell to eight-month lows last week, but this week saw prices recover slightly following an increase in carbon, gas and oil. Annual power rose 0.8% to £51.5/MWh and annual gas climbed 0.2% to 66.9p/th. The annual baseload power price is now 1% lower than the May 2012 average and 3% lower than the 2012 average of £52.9/MWh. Gas generation was more profitable this week as the gains in power prices outstripped gas prices, the annual clean spark spread increased 4% to £2.8/MWh. In contrast, the annual clean dark spread decreased as a result of rising carbon. The spread fell 1% to £23.6/MWh. The clean dark spread is now at a £20.8/MWh premium to the clean spark spread. Concerns about tensions in the Middle East affecting oil supplies outweighed worries about low demand this week and the month-ahead Brent crude oil contract rose 1.9% to a weekly average of $104.1/bl. Carbon prices climbed 13.1% to a weekly average of €3.6/t as EU ministers and the German Chancellor expressed support for the idea of fixing the EU ETS to promote a higher price for carbon.
Energy Wholesale Market Review Week Ending 10th May 2013.
Energy Wholesale Market Review Week Ending 3rd May 2013
Power and gas prices have continued downwards this week as a result of falling demand, secure supplies and high low-carbon generation. Annual power fell 1.6% to an eight-month low of £51.1/MWh and annual gas dropped 1.1% to 66.8p/th. The annual baseload power price is now 1% lower than the May 2012 average and 3% lower than the 2012 average of £52.9/MWh. Short-term prices were also down this week, gas fell 2.2% to 63.8p/th while power dropped 6.6% to £44.4/MWh as wind power output increased. Gas generation was less profitable this week as a result of lower power prices, the annual clean spark spread fell 12% to £2.7/MWh. The annual clean dark spread also decreased, the spread fell 2.1% to £23.7/MWh. The clean dark spread is now at a £21.0/MWh premium to the clean spark spread. Month-ahead Brent crude oil recovered this week following a cut in interest rates from the European Central Bank which boosted global markets. The contract was up 1.2% to a weekly average of $102.2/bl. Carbon prices climbed 5.6% to a weekly average of €3.2/t as utility demand for carbon remained stable at a number of national auctions.
Energy Wholesale Market Review Week Ending 3rd May 2013.
Written By Graham Paul