Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th February 2014
Long-term power prices returned to downward trends this week, wiping out gains seen last Friday, as gas and coal prices saw sharp falls. Annual April 14 baseload power decreased 1.8% to £49.0/MWh. Short-term power prices rose this week with falling wind output and unplanned nuclear outages. Day-ahead power rose 4.7% to £44.8/MWh. In contrast gas prices fell with continuing low demand and increased LNG supply. Winter gas demand is now at its lowest level in 7 years. Day-ahead gas dropped 2.0% to an 18-month low of 56.2p/th on Friday. The annual April 14 clean spark spread fell 8% to £2.6/MWh as annual power prices fell. The annual April 14 clean dark spread dropped 5% to £16.4/MWh as power fell faster than coal. Coal prices are now at their lowest level in 4 years. Month-ahead Brent crude oil dipped 0.1% to a weekly average of $109.6/bl with Libyan supply disruptions offset by weak economic data from China. Carbon prices fell 1.6% over the week from a 14-month high of €7.2/t on Monday.
Energy Wholesale Market Review Week Ending 28th February 2014.
Energy Wholesale Market Review Week Ending 21st February 2014
Long-term power prices increased this week, wiping out the fall seen last Friday, as gas prices stabilised and carbon prices hit a 14-month high. Annual April 14 baseload power climbed 1.4% to £50.1/MWh. Short-term power and gas prices were down this week as a result of lower demand, strong gas supply and rising wind output. Gas demand is around 12% below last winter and 20% below seasonal norms. Day-ahead gas dropped 1.1% to an 18-month low of 57.6p/th on Friday. Day-ahead power fell 7.4% to £42.8/MWh on the back of a surge in wind output. Clean spark and dark spreads recovered on rising power prices. The annual April 14 clean spark spread rose 15% to £2.8/MWh and the annual clean dark spread was up 2.5% to £17.3/MWh. Month-ahead Brent crude oil rose 1% to a weekly average of $109.7/bl as a weaker dollar boosted demand. Carbon prices climbed to a 14-month high of €7.0/t on Thursday as the market anticipates the removal of 400mn allowances from mid-March.
Energy Wholesale Market Review Week Ending 21st February 2014.
Energy Wholesale Market Review Week Ending 14th February 2014
Long-term power prices fell this week following decreases in their gas equivalents. Annual April 14 baseload power dropped 1.5% to £49.4/MWh as its gas counterpart fell 2.3% to 61.8p/th. Day-ahead baseload power decreased 0.9% to £46.2/MWh with record-high wind output and falls in coal and gas prices. Lower demand and high storage use contributed to day-ahead gas falling to a new eight-month low of 58.3p/th. The annual April 14 clean spark spread rose 16% to £2.5/MWh as gas fell faster than power. The annual April 14 clean dark spread rose 0.1% to £16.8/MWh as coal fell slightly faster than power. Month-ahead Brent crude oil prices rose 2.2% to a weekly average of $108.7/bl as the market tightened with renewed demand in advanced economies. Carbon prices continued their resurgence, climbing 7.5% to a weekly average of €6.45/t. EU ETS allowances are now 35.3% more expensive compared with the same period last year.
Energy Wholesale Market Review Week Ending 14th February 2014.
Energy Wholesale Market Review Week Ending 7th February 2014
Long-term power prices fell this week following decreases in their gas equivalents. Annual April 14 baseload power dropped 0.3% to £50.2/MWh as its gas counterpart fell 0.7% to 63.3p/th. Day-ahead baseload power increased 3.6% to £44.9/MWh with increased wind output and despite falls in coal and gas prices. Lower demand and high LNG supply contributed to day-ahead gas falling to a new seven-month low of 60.6p/th. The annual April 14 clean spark spread fell 8% to £2.1/MWh as power fell faster than gas. The annual April 14 clean dark spread fell 5.1% to £16.7/MWh following annual highs in carbon prices. Month-ahead Brent crude oil fell 0.3% to a weekly average of $107.2/bl as fears about emerging market growth weighed heavily on prices. In contrast, carbon prices climbed to a yearly high of €6.55/t on Friday as the European parliament finally agreed to fast-track back-loading proposals.
Energy Wholesale Market Review Week Ending 7th February 2014.
Written By Graham Paul
