Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 30th May 2014
A strong supply picture, with storage at its highest levels for May since 2007, helped power and gas contracts fall to historic lows this week. High storage supply continued to affect gas, with the annual October 14 contract dropping 0.8% to 58.5p/th. Its power counterpart followed lower, helped by a fall in the winter 14 power contract that dropped below its summer 15 counterpart for the first time in two years. Day-ahead gas continued to tumble despite increased short-term demand as LNG deliveries pushed the contract to a new four-year low of 42.3p/th. In spreads, the annual October 14 clean spark spread rose 4% to £3.9/MWh as gas prices fell faster than power, while the annual October 14 clean dark spread lost 1% to £17.5/MWh as coal prices rose and power prices fell. Commodity markets were bullish, with Brent crude oil climbing 0.1% to $110.2/bl as security of supply fears in Libya and Ukraine continued to influence and carbon prices rising 4.5% to €5.2/t with speculation over future permit cuts.
Energy Wholesale Market Review Week Ending 30th May 2014.
Energy Wholesale Market Review Week Ending 23rd May 2014
Low demand continued to characterise the power market this week, as spot prices recorded new four-year lows. Day-ahead power dropped 5.3% week-on-week to £37.7/MWh as low demand and increasing wind output pulled prices lower. In contrast, gas contracts rose with outages at Norwegian fields, security of supply fears in Ukraine and a bullish oil market all influencing. Annual October 14 gas was up 0.6% to 58.7p/th, helping its power counterpart gain 0.6% to £50.0/MWh. In spreads, the annual October 14 clean spark spread fell 2% to £3.7/MWh as gas prices rose faster than power, while the annual October 14 clean dark spread was unchanged at £17.7/MWh. Commodity markets were mixed, with Brent crude oil climbing to a three-month high of $110.7/bl on increasing tensions in Libya while carbon prices dropped 3.2% to €5.2/t as weak demand continued.
Energy Wholesale Market Review Week Ending 23rd May 2014.
Energy Wholesale Market Review Week Ending 16th May 2014
Short-term gas prices hit new four-year lows this week as domestic markets remained bearish on falling demand and comfortable supplies. Day-ahead gas fell to 44.1p/th, its lowest level since October 2010, as LNG and continental deliveries continued. LNG supplies also added to high storage levels and suppressed gas prices along the curve. Power contracts followed, with annual October 14 power dropping 0.4% to £49.7/MWh. Day-ahead power was also influenced by gas, falling to £39.8/MWh with gas dominant in the generation mix. In spreads, the annual October 14 clean spark spread rose 7% to £3.8/MWh as gas prices fell faster than power, while the annual October 14 clean dark spread decreased 0.6% to £17.7/MWh. In contrast, commodities were more bullish, with Brent crude oil up 1% to $109.0/bl on the back of stalling Libyan exports and API 2 coal prices up 0.2% with increasing Chinese demand.
Energy Wholesale Market Review Week Ending 16th May 2014.
Energy Wholesale Market Review Week Ending 9th May 2014
Spot power and gas prices hit four-year lows this week as bearish fundamentals of low demand and increasing supplies characterised the market. Day-ahead gas fell to 45.7p/th, its lowest level since October 2010, as LNG and continental deliveries continued. This trend extended along the curve, as high storage levels suppressed long-term contracts, the annual October 14 baseload power contract declined 2.4% to settle at £49.9/MWh. In contrast, day-ahead power was up 1.1% for the week, but also fell to a four-year low of £38.4/MWh on Wednesday. Lower prices affected spark spreads, with the annual October 14 clean spark spread down 8% to £3.6/MWh with power prices falling faster than gas. The annual October 14 clean dark spread decreased 4.2% to £17.9/MWh. Commodities showed similar trends, as Brent crude oil declined 0.6% to $107.9/bl and API 2 coal prices dropped 0.8%.
Energy Wholesale Market Review Week Ending 9th May 2014.
Energy Wholesale Market Review Week Ending 2nd May 2014
Spot power and gas prices neared four-year lows this week as continued low demand combined with increasing supplies. Day-ahead gas tumbled 4.7% over the week to reach a four-year low of 46.3p/th as LNG and continental deliveries continued. Day-ahead power followed lower and dropped below £40/MWh for the first time in three years on Friday with low demand. In long-term contracts, the reduced need for storage injections pulled gas contracts lower. These fall influenced long-term power, with the Annual October 14 contract down 2.1% to £51.1/MWh. The annual October 14 clean spark spread rose 10% to £3.9/MWh as gas prices fell faster than power, while the annual October 14 clean dark spread decreased 2.4% to £18.8/MWh as coal prices rose and power fell. In commodities, Brent crude oil prices fell 1% to a weekly average of $108.6/bl as US crude stocks reached new highs. In contrast, coal prices rose 1.3%, with the contract reaching a three-month high of $83.7/t on Tuesday.
Energy Wholesale Market Review Week Ending 2nd May 2014.
Written By Graham Paul
