Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 25th April 2014
Diverging trends in long and short-term prices were seen this week, with falling demand and Ukraine tensions influencing markets. In long-term contracts, increasing tensions in the Ukraine weighed on prices with winter 14 gas up 0.2% to 65.0p/th. Rises in gas influenced power, with the Annual October 14 contract up 0.8% to £51.8/MWh. In prompt markets, contracts declined with falling demand. Day-ahead gas declined 4.8% to 48.6p/th while its power counterpart fell 3.7% to £41.90/MWh. The annual October 14 clean spark spread rose 15% to £3.5/MWh as power prices fell faster than gas, while the annual October 14 clean dark spread increased 1.5% to £19.2/MWh as coal prices rose and power fell. In commodities, Brent crude oil prices rose 0.5% to a weekly average of $109.6/bl as Ukraine tensions underpinned a bullish market. EU ETS carbon prices continued recent climbs, increasing 4.9% with stronger demand, API 2 coal prices reached a nine-week high of $83.0/t on Friday.
Energy Wholesale Market Review Week Ending 25th April 2014.
Energy Wholesale Market Review Week Ending 11th April 2014
Security of supply fears returned to influence the market this week as gas contracts surged higher on news that Russia may cut gas supplies to Ukraine. Day-ahead gas climbed 9.1% to 52.4p/th as NBP prices reacted despite high storage capacity and continued LNG deliveries. Long-term gas contracts rose across-the-board and fed into power contracts with annual October 14 power up 3.4% to £50.7/MWh. Day-ahead power increased with rises in gas, climbing 3.5% to £42.6/MWh despite higher wind output towards the end of the week. The annual October 14 clean spark spread dropped 18% to £3.3/MWh as gas prices rose faster than power, while the annual October 14 clean dark spread rose 7.3% to £18.7/MWh with increasing power prices and flat-lining coal. In commodities, Brent crude oil prices rose 0.5% to a weekly average of $106.9/bl on increased tensions between Russia and Ukraine. EU ETS carbon prices rebounded 6.2% after last week’s lows to reach €5.0/t with more credit withdrawals looming.
Energy Wholesale Market Review Week Ending 11th April 2014.
Energy Wholesale Market Review Week Ending 4th April 2014
This week, gas contracts have fallen to new lows with weak demand and continuing high supply from LNG deliveries and storage. Long-term gas contracts were lower following milder weather predictions for the coming months with annual October 14 power down 5.5% to a new low of 57.2p/th. Falls in gas fed into power, with annual October 14 power dropping 3% to £49.0/MWh. The day-ahead power contract fell to a 20-month low of £40.3/MWh as day-ahead gas fell to a near three-year low of 47.7p/th on Friday. The annual October 14 clean spark spread climbed 19% to £4.0/MWh as gas prices fell. The annual October 14 clean dark spread decreased 9.6% to £17.3/MWh as power prices fell. In commodities, Brent crude oil prices declined 0.7% to a weekly average of $106.4/bl on returning Libyan exports, while carbon prices tumbled 15.6% to a weekly average of €4.7/t as surplus credits remained in the market. The contract fell to a six-month low of €4.3/t on Monday.
Energy Wholesale Market Review Week Ending 4th April 2014.
Written By Graham Paul
