Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 27th September 2013
Despite falling gas prices, long-term power contracts were stable as a result of strong carbon prices. Annual October 13 baseload power remained the same at £51.5/MWh, while its gas counterpart dropped 0.2% to 66.5p/th with lower oil contracts. Day-ahead contracts fell across the board as gas demand dropped, while wind and nuclear generation rose towards the end of the week. Day-ahead baseload power saw a 5.5% fall week-on-week to £48.2/MWh. The annual clean spark spread rose 1% to £1.6/MWh as gas prices fell while power remained stable. The clean dark spread fell 0.8% to £22.0/MWh as the price of carbon decreased while coal and power held steady. Month-ahead Brent crude oil dropped 2.7% to a weekly average of $109.8/bl over confidence about talks between the US and Iran over the Iranian nuclear programme. The contract reached a six-week low of $108.1/bl on Tuesday as supplies in Libya and Iraq increased. On the same day, carbon prices rose to a weekly high of €5.6/t as the EU discussed a possible reverse mechanism that could affect supply of carbon allowances.
Energy Wholesale Market Review Week Ending 27th September 2013.
Energy Wholesale Market Review Week Ending 20th September 2013
Long-term power and gas prices fell this week following decreases in oil. Annual October 13 power dipped 0.8% to £51.6/MWh while its gas counterpart fell 1.5% to 66.6p/th. Day-ahead power contracts continued to rise week-on-week as a result of nuclear outages, low wind generation and a steady climb in coal contracts. Day-ahead baseload power increased 8.6% to a four-month high of £51.0/MWh on Wednesday 18 September. The annual clean spark spread rose 27% to £1.6/MWh as gas prices fell further than power, while the clean dark spread fell 1.1% to £22.2MWh with rising coal contracts. As Libyan oil production increased, month-ahead Brent crude oil dropped 2.7% to a weekly average of $109.8/bl. The contract reached a five-week low of $108.3/bl on Wednesday. On the same day, carbon prices rose to an eight-month high of €5.8/t following a pause in allowance allocation.
Energy Wholesale Market Review Week Ending 20th September 2013.
Energy Wholesale Market Review Week Ending 13th September 2013
Power and gas prices for this winter rose as a result of concerns about winter supplies, as well as higher carbon and coal prices. Annual October 13 power rose 0.1% to £52.0/MWh and annual October 13 gas remained at 67.6p/th. Day-ahead contracts saw a notable increase week-on-week as temperatures fell and demand increased, pushing day-ahead power up 11.3% to £47.0/MWh. Rising carbon prices pulled annual clean spark and dark spreads down this week. The annual clean spark spread dropped 9% to £1.3/MWh while the dark spread is now at a £19.6/MWh premium to its gas counterpart. Month-ahead Brent crude oil dropped 1.9% to a weekly average of $112.8/bl as the US postponed a vote on military action in Syria in favour of a possible diplomatic solution. Carbon prices climbed 15.5% to a weekly average of €5.3/t as the EU reduced the level of free allowances and energy prices increased across the continent.
Energy Wholesale Market Review Week Ending 13th September 2013.
Energy Wholesale Market Review Week Ending 6th September 2013
Power prices generally rose this week following increases in carbon and oil. Annual October 13 power increased 0.7% to £51.8/MWh but annual October gas fell 0.1% to 67.6p/th. Short-term power prices dropped to a nine-month low of £42.2/MWh at the end of the week. The contract was driven by increases in wind generation to 3.7GW, lower-than-expected demand and a high percentage of coal power generation in the fuel mix. The price of carbon also increased, rising 9% to€4.9/t after the EU Commission announced a cut to the free CO2 permit quota for industry by up to 12% on Friday 6 September. Despite the rise, the annual clean spark spread increased 9% to £1.4/MWh, following increases in long-term power contracts. It remains 69% lower than last year’s value. The annual clean dark spread fell 0.1% to £22.8MWh. Month-ahead Brent crude continued to climb, rising with supply disruptions in Libya and concerns over the potential US military strike in Syria. It reached $115.4/bl on Friday.
Energy Wholesale Market Review Week Ending 6th September 2013.
Written By Graham Paul
