Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 31st October 2014
Long-term power and gas prices dipped this week following the continuing falls in commodity prices and a more positive outlook for gas supplies over winter. Short-term gas prices also fell on the back of milder temperatures and a rise in supply. In contrast, day-ahead baseload power reached a 10-month high on Tuesday as wind output fell to 2GW. In spreads, the annual April 15 clean spark spread climbed to £6.9/MWh as gas fell faster than power. In contrast, the clean dark spread dropped 0.7% to £18.9/MWh as power prices fell while coal remained relatively stable. Month-ahead Brent crude oil continued to be stable at a weekly average of $85.8/bl. Prices rose midweek on a statement from the US Federal Reserve, but fell back towards the end of the week on oversupply and a stronger dollar. This helped pull down the annual April 15 gas price by 1.5% to 55.4p/th.
Energy Wholesale Market Review Week Ending 31st October 2014.
Energy Wholesale Market Review Week Ending 24th October 2014
Power and gas prices were down across the board this week as milder temperatures and strong wind speeds influenced short-term contracts and low commodity prices drove the long-term. Wind power reached 24% of the generation mix over the last week and remained high helping day-ahead power fall 1.9% week-on-week. Oil and coal prices remained stable at four-year lows, with oil prices at an average of $85.9/bl this week as concerns about weak demand persisted. This kept longer-term gas and power prices depressed, annual April 15 gas fell 1.7% this week to 56.3p/th and annual April 15 power was down 1.2% to £50.6/MWh. Clean dark spreads fell this week as power prices dipped but coal remained stable. The annual clean dark spread fell 4.9% to £19.0/MWh while the annual clean spark spread remained stable at £6.6/MWh. Carbon prices increased 1.7% to a weekly average of €6.2/t after the UK government called for the actions to reduce the oversupply of allowances in the EU ETS to be brought forward to 2017.
Energy Wholesale Market Review Week Ending 24th October 2014
Energy Wholesale Market Review Week Ending 17th October 2014
Gas and power prices fell this week in both long and short-term markets. Long-term contracts were pulled down by continuing decreases in coal and oil as a result of waning demand. Compared to last week, the annual April 15 gas contract fell 1.0% to 57.2p/th. On the day-ahead market, prices continued to fall on the back of rising imports and the expectation of warmer weather towards the end of the week. Day-ahead baseload power dipped 3.2% to £43.7/MWh. Clean spark spreads and clean dark spreads fell this week as gas and coal prices fell faster than power. Clean spark spreads dropped 0.8% to £6.6/MWh while clean dark spread fell 1.4% to £19.9/MWh. Month-ahead Brent crude oil dropped to a four year low of $85.8/bl, pulled down by the global supply glut and an indication from Opec that it is unlikely to reduce production. In contrast to the falls, carbon prices increased to €6.1/t on expectations that EU leaders may agree on the content of the EU 2030 climate and energy framework at the end of October.
Energy Wholesale Market Review Week Ending 17th October 2014
Energy Wholesale Market Review Week Ending 10th October 2014
Diverging trends were witnessed for spot and long-term prices this week. Spot prices continued to rise, as short-term gas and power demand surged higher. Day-ahead power rose 8.8% week-on-week to a four-week high of £45.2/MWh. Longer-term contracts failed to track spot market rises, as the high gas storage picture and further decreases in commodities pulled contracts lower along the curve. Gas storage continued at record levels, reaching 99% full in the week, and combined with lower oil prices to pull summer 15 gas down 1.2% to 53.7p/th, a three-month low. Seasonal power prices followed lower, and were also influenced by continued declines in coal. Summer 15 power was down 0.1% to £48.7/MWh and is now 2.6% below its level a month ago. Long-term power contracts fell at lower rates than commodities, and as a result spreads gained in value. The annual April 15 clean dark spread rose 0.9% to £20.3/MWh. Global commodities continued to weigh on the GB market, as both Brent crude oil and coal prices fell to four-year lows. Brent crude oil was down 3.5% to $89.1/bl, its lowest level since November 2010.
Energy Wholesale Market Review Week Ending 10th October 2014
Energy Wholesale Market Review Week Ending 3rd October 2014
Power contracts fell across the board this week, as a strong gas supply picture and further steep falls in commodities weighed on the market. GB power and gas contracts moved into the new trading year, with winter 14 power finishing trading in the week 11% below levels at the start of 2014. Day-ahead power was down 2% week-on-week as stations returned from outages and wind output rose. Falls came despite a rise in day-ahead gas, as tight system dynamics continued to affect the market. Along the curve, power and gas prices continued to factor in falling commodity prices, summer 15 power dropped 1.6% to £48.8/MWh and is now 2.2% below is level a month ago. Summer 15 gas was also down, dropping 1.8% to 54.3p/th on a continued high supply picture. Spreads reversed recent rises following a fall in power prices, and the annual April 15 clean dark spread was down 4.6% to £20.1/MWh. Commodities continued recent bearish momentum. Annual API 2 coal prices dropped 1.8% to a new four-year low of $74.4/t and continued to pull long-term power contracts lower. Month-ahead Brent crude oil dropped to a 28-month low of $92.2/bl with a strong US dollar and continued falls in Chinese demand.
Energy Wholesale Market Review Week Ending 3rd October 2014
Written By Graham Paul
