Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 26th July 2013
There was very little movement in long-term power and gas prices this week as carbon, coal and oil were relatively unchanged. Annual October 13 power dipped 0.2% to £51.9/MWh, it is now 2% lower than the 2012 average. Annual October 13 gas dropped 0.2% to 68.4p/th, and the contract is now 4% higher than the 2012 average. Short-term prices saw greater movement as outages in the North Sea pushed up gas prices and rising coal generation pulled power prices down. The annual clean spark spread is now 58% lower than last year after falling 5% to £1.9/MWh as a result of the fall in power prices. In contrast the annual clean dark spread rose 0.3% to £25.0/MWh. The contract is now at a £23.1/MWh premium to the annual clean spark spread. Month-ahead Brent crude dropped 0.7% to a weekly average of $107.1/bl following weak Chinese economic data. Coal prices were down 0.7% to a weekly average of $85.6/t after the European Investment Bank said it planned to reduce support to the sector. Carbon prices climbed 3.9% to a weekly average of €4.4/t as a result of lower allowance supply.
Energy Wholesale Market Review Week Ending 26th July 2013.
Energy Wholesale Market Review Week Ending 19th July 2013
There was very little change in power and gas prices this week. The warmer summer weather pulled demand downwards but this was offset by concerns about supplies. Annual October 13 power remained at £52.0/MWh, it is now 2% lower than the 2012 average. Annual October 13 gas dropped 0.5% to 72.3p/th, and the contract is now 4% higher than the 2012 average. The annual clean spark spread is now 57% lower than last year after climbing 5% to £2/MWh as a result of the fall in gas prices. In contrast the annual clean dark spread fell 0.7% to £24.8/MWh; although it is now 18% higher than last year. Month-ahead Brent crude oil reached a three-month high of $109.4/bl on 16 July as a result of supply disruptions in Africa. Coal prices remained stable at $86.3/t and carbon prices dropped 1.5% to a weekly average of €4.1/t on weak trading activity. DECC released its fossil fuel price predictions alongside the draft Delivery Plan for EMR. The central scenario has average gas prices of 66.7p/th in 2014 and 73.8p/th by 2018.
Energy Wholesale Market Review Week Ending 19th July 2013.
Energy Wholesale Market Review Week Ending 12th July 2013
Annual power and gas prices climbed slightly this week, upwards pressure was applied by rising oil contracts but gains were limited by low demand caused by warmer summer weather. Annual October 13 gas climbed 0.4% to 68.6p/th but its electricity counterpart was up only 0.1% to £52.0/MWh. Low wind speeds caused day-ahead power to rise 1% to £47.3/MWh. The long-term clean sparks spread was up 2% to £2.0/MWh as a result of lower carbon. The same clean dark spread also increased, rising 3.5% to £24.7/MWh, the dark spread is now at a £22.8/MWh premium to the clean spark spread. Month-ahead Brent crude oil hit a 12-week high of $108.8/bl on Thursday following the announcement that the US would continue with its economic stimulus measures. On average coal prices remained stable at $86.2/t and oversupply continues to affect the market. Carbon prices dipped 7.3% to a weekly average of €4.2/t as fewer utilities were buying allowances at recent auctions.
Energy Wholesale Market Review Week Ending 12th July 2013.
Energy Wholesale Market Review Week Ending 5th July 2013
Annual power and gas contracts have increased slightly this week on the back of rising oil and carbon prices. Annual October 13 power climbed 0.3% to £51.9/MWh and annual October 13 gas was up 0.2% to 68.34p/th. Gas demand halved this week as temperatures pushed above seasonal norms, which in turn drove short-term prices downwards. Day-ahead power decreased 1.6% to £46.85/MWh; however concerns about gas supplies meant day-ahead gas only fell 0.2% to 63.50p/th. The long-term clean spark spread remained at £1.9/MWh as power and gas prices rose. In contrast the clean dark spread dipped 0.9% to £24.6/MWh; it is now at a £22.6/MWh premium to the clean spark spread. The price of EU carbon averaged €4.48/t over the week. But the price jumped 11.6% to €4.79/t on 3 July after the European Parliament backed plans to back-load allowances. Month-ahead Brent crude oil increased 2.8% to $104.29/bl over concerns about the crisis in Egypt.
Energy Wholesale Market Review Week Ending 5th July 2013.
Written By Graham Paul