Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th March 2014
This week, power and gas prices fell across-the-board. Long-term contracts were lower following milder weather predictions for the coming months; annual April 14 power dropped 4% to a recorded low of £47.0/MWh and annual gas recorded an all-time low of 58.38p/t. Despite higher demand driven by colder temperatures, short-term contracts declined. Day-ahead power dropped 9.5% week-on-week as high coal burn and returning nuclear capacity offset falling wind output. Day-ahead gas fell to an 18-month low of 51.75p/th. The annual April 14 clean spark spread climbed 42% to £1.0/MWh as carbon prices fell faster than gas. The annual April 14 clean dark spread decreased 5.7% to £16.5/MWh as coal prices fell. Brent crude oil prices gained 0.5% to average $107.1/bl with indications that the US will place further sanctions on Russia. Carbon prices tumbled 8.1% to a weekly average of €5.6/t as surplus credits remained. EU emissions data saw a sharp fall in 2013, reducing demand for carbon permits.
Energy Wholesale Market Review Week Ending 28th March 2014.
Energy Wholesale Market Review Week Ending 21st March 2014
This week, gas prices continued recent falls as low seasonal demand was complimented by high supplies. Day-ahead gas dropped 2.3% over the week to average 56.3p/th. Annual April 14 gas fell 2.3% to 60.9p/th. Power prices followed these downward trends in gas. Day-ahead power dropped 6% to average £43.6/MWh for the week as record wind generation pushed gas and coal off the system. Annual April 14 baseload dropped 1.6% over the week to average £49.0/MWh. The annual April 14 clean spark spread climbed 42% to £1.0/MWh as carbon prices fell faster than gas. The annual April 14 clean dark spread decreased 4.3% to £16.5/MWh as coal prices rose and power fell. Brent crude oil prices fell 1.3% to a weekly average of $106.6/bl. The contract dropped to a four-month low of $106.0/bl on Thursday with markets reacting to US stimulus announcements. Carbon prices declined10.6% to a weekly average of €6.1/t. Prices were down despite back-loading auctions being completed.
Energy Wholesale Market Review Week Ending 21st March 2014.
Energy Wholesale Market Review Week Ending 14th March 2014
This week, effects of the Ukraine price spike wore off as contracts returned to lower levels. In power markets, annual April 14 baseload fell 1.1% to £49.8/MWh while summer 14 power dropped 1.6% to £45.8/MWh. Short-term power prices were also down on the back of falling gas, coal and carbon prices. Day-ahead power lost 0.1% to £44.7/MWh. The annual April 14 clean spark spread declined 8% to £2.4/MWh this week as power fell faster than gas. The annual April 14 clean dark spread lowered 2.1% to £17.2/MWh with falling power prices. Declines were slightly offset with lower carbon prices. Carbon prices fell 2.1% week-on-week despite back-loading of allowances starting on Wednesday. Month-ahead Brent crude oil fell 1.1% to a weekly average of $108.0/bl as concerns for the Chinese economy weighed heavily on commodity markets. The contract fell to a five-week low of $107.56/bl on Friday.
Energy Wholesale Market Review Week Ending 14th March 2014.
Energy Wholesale Market Review Week Ending 7th March 2014
This week, increasing tensions between Russia and Ukraine directly impacted gas prices which subsequently fed into power contracts. Day-ahead gas was pushed 2.8% higher to average 58.1p/th as a result of these security of supply fears. In power markets, annual April 14 baseload rose 2.8% to £50.3/MWh. Short-term power prices were also up on the back of rising gas prices and low wind output. Day-ahead power rose 0.1% to £44.8/MWh. The annual April 14 clean spark spread climbed 2% to £2.7/MWh as gas prices went up faster than power. The annual April 14 clean dark spread climbed 6.6% to £17.6/MWh with coal rising faster than power. Month-ahead Brent crude oil fell 0.3% to a weekly average of $109.2/bl despite Russia/ Ukraine tensions pushing the contract to a three-month high of $111.87/bl on Monday. Carbon prices rose 1.9% with back-loading proposals starting next week.
Energy Wholesale Market Review Week Ending 7th March 2014.
Written By Graham Paul
