Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 25th October 2013
Long-term power prices were mixed this week as gas increased while carbon and oil fell. Annual April 14 baseload power remained at last week’s value of £52.3/MWh but its gas counterpart increased 0.3% to 66.7p/th. Despite a rise in gas prices from supply disruptions, day-ahead power saw a 1.2% fall to an average of £47.2/MWh on rising wind and coal output. The annual clean spark spread rose 1% to £2.4/MWh on the back of falling carbon prices. The clean dark spread fell 0.3% to £19.5/MWh as coal prices rose faster than power. Month-ahead Brent crude oil fell 1.5% to a weekly average of $108.8/bl due to rising US oil inventories. The contract reached a 12-week low of $106.8/bl on Friday. Coal prices increased, rising 3.1% to an average of $84.3/t as a result of winter restocking in parts of Asia. Carbon prices dropped 5.5% to a weekly average of €4.7/t ahead of the mid-November sell off by the Green Investment Bank.
Energy Wholesale Market Review Week Ending 25th October 2013.
Energy Wholesale Market Review Week Ending 18th October 2013
Long-term gas and power prices moved in opposite directions this week. Annual April 14 baseload power increased 0.2% to £52.3/MWh following a rise in carbon. Meanwhile, its gas counterpart dipped 0.2% to 66.5p/th on improved supplies. The annual clean spark spread rose 2% to £2.4/MWh as power climbed while gas prices fell. The clean dark spread fell 3.3% to £19.2MWh as a result of an increase carbon prices. Month-ahead Brent crude oil climbed 0.4% to a weekly average of $110.4/bl following news of the US Budget resolution. Continuing oversupply pulled down coal to a new three-year low of $80.7/t, but the contract rose towards the end of the week to $83.0/t as demand from China increased. Carbon prices rose to a two-week high on Thursday after the German chancellor supported backloading proposals. This week, British Gas became the second of the Big Six to raise its domestic tariffs this winter. Average gas prices are expected to increase by 8.4%, with a rise of 10.4% on electricity.
Energy Wholesale Market Review Week Ending 18th October 2013.
Energy Wholesale Market Review Week Ending 11th October 2013
Prices rose across the board this week as increases in oil and gas pushed up UK power prices. Annual April 14 baseload power rose 0.8% to £52.1/MWh following a 0.8% increase to 66.7p/th in its gas equivalent. Day-ahead contracts climbed as colder temperatures increased gas demand for space heating. Despite a rise in wind power generation, day-ahead baseload power increased 7.4% to £51.1/MWh on the back of higher gas prices. The contract reached a two-week high of £51.1/MWh on Friday. The annual clean spark spread rose 9% to £2.4/MWh as power rose further than gas. The clean dark spread increased 4.3% to £19.9/MWh as power rose while coal fell. Month-ahead Brent crude oil climbed 1.6% this week to an average of $110.0/bl on hopes a deal could be reached to extend the US debt ceiling. The contract reached a four-week high of $111.5/bl on Friday. Coal fell to a three-year low of $81.5/t this week with continuing oversupply, as an end to strikes in Colombia increased exports.
Energy Wholesale Market Review Week Ending 11th October 2013.
Energy Wholesale Market Review Week Ending 4th October 2013
Prices were down across the board this week as falling commodity prices pulled down UK power and gas. Annual April 14 baseload power fell 1% to £51.7/MWh after a 0.6% fall in its gas counterpart to 66.1p/th. Day-ahead contracts dropped as demand tumbled with higher-than-expected temperatures. Day-ahead baseload power decreased 1.2% to £47.6/MWh, partly due to an increase in wind power to 77% peak output during the week. The annual clean spark spread fell 6% to £2.2/MWh as power fell further than gas. The clean dark spread rose 2.6% to £19.3MWh as the price of coal continued to fall. Month-ahead Brent crude oil dropped 0.4% to a weekly average of $108.2/bl as demand concerns about the partial shut-down of the US government outweighed the weak dollar and opening of the Keystone XL pipeline. The contract reached a seven-week low of $107.7/bl on Wednesday 2 October. Coal dropped to a three-year low of $82.3/t as a result of continuing oversupply.
Energy Wholesale Market Review Week Ending 4th October 2013.
Written By Graham Paul
