Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th November 2014
Despite dramatic falls for Brent crude oil prices over the week, most power and gas prices rose. Day-ahead gas gained 4.7% to 58.8p/th, as higher demand led to a tight gas system. Rises in the spot market fed through along the curve, as storage withdrawals were needed to balance the system. Summer 15 gas climbed 7.1% to a six-week high of 56.0p/th. Long-term power contracts followed higher, as summer 15 power gained 2% to £49.0/MWh. The contract is now 2.5% above its level last month. Day-ahead power bucked the wider trend to fall week-on-week, dropping 3.8% to £48.0/MWh. In spreads, the annual April 15 clean dark spread rose 3.7% to £19.0/MWh as power prices rose faster than coal. Commodities were a mixed picture this week, as Brent crude oil continued its slump, dropping 1.9% to $77.3/bl and hitting a four-year low of $71.9/bl on Friday. In contrast, API 2 coal prices climbed 1.1% to $73.0/t on the back of partial mine closures and EU ETS carbon prices gained 2.8% to average €7.1/t, their highest weekly average in two years.
Energy Wholesale Market Review Week Ending 28th November 2014.
Energy Wholesale Market Review Week Ending 21st November 2014
Power contracts rose across the board this week, following increases in demand and rises in gas and coal. The spot market was most reactive, as day-ahead power climbed 4% to £49.9/MWh. Prices followed higher along the curve, summer 15 power climbed 1.7% to a three-week high of £48.3/MWh. Rising gas prices influenced power contracts as day-ahead gas rose 4.9% to an eight-month high of 56.1p/th. The spot gas market climbed following outages at storage withdrawals sites and increases in daily gas demand, which hit its highest level in eight months. Seasonal gas contracts followed higher with the annual April 15 gas contract rising 1.8% to average 56.0p/th. Rising coal and carbon prices were factored in to GB power and gas markets. Annual API 2 coal prices gained 1.1% to average $72.2/t, while EU ETS carbon permits rose to an eight-month of €7.0/t. In contrast, month-ahead Brent crude oil fell 2.8% this week to average $78.8/bl. The market continued to be affected by high levels of supply.
Energy Wholesale Market Review Week Ending 21st November 2014.
Energy Wholesale Market Review Week Ending 14th November 2014
Power and gas prices dropped again this week as oil continued to fall, and gas supplies looked secure. Annual April 15 baseload power was down 0.8% to £49.8/MWh and annual April 15 gas slipped 0.6% to 55.0p/th. In contrast, day-ahead prices increased on the back of falling wind output and extensions to outages at Heysham and Hartlepool nuclear power stations. Day-ahead power climbed 1.8% to £48.0/MWh and its gas counterpart rose 1.9% to 53.5p/th. Month-ahead Brent crude oil fell 2.7% this week to a weekly average of $81.0/bl as the market remains oversupplied and no signs have emerged from OPEC nations of supply restrictions. Coal prices climbed 1.3% to average $71.4/t over the week. Some Australian mines are beginning to close temporarily as a result of low prices. Carbon prices continued their rise as work continues in the EU to progress a Market Stability Reserve.
Energy Wholesale Market Review Week Ending 14th November 2014.
Energy Wholesale Market Review Week Ending 7th November 2014
Power and gas prices diverged this week, as falling commodity prices weighed on long-term contracts while increasing demand pushed up spot prices. Annual April 15 baseload power fell 0.2% to £55.3/MWh following a 0.2% fall in its gas equivalent to 55.3p/th. In contrast, day-ahead prices climbed on the back of increased demand for heating as temperatures fell below seasonal norms. Nuclear power outages and low-wind output also supported spot prices, resulting in a rise in day-ahead baseload power of 6.1% to £52.5/MWh. In spreads, the annual April 15 clean spark spread was stable this week, at £6.9/MWh as gas, power and carbon all decreased. The price of coal fell faster than that of power, which pushed up the annual April 15 clean dark spread by1.6% to £19.2/MWh. Month-ahead Brent crude oil saw four-year lows this week after Saudi Arabia announced that it had cut prices to the US. Prices fell to $82.0/bl and were down 3.1% on average to $83.3/bl.
Energy Wholesale Market Review Week Ending 7th November 2014.
Written By Graham Paul
