Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 19th December 2014
Power gas and power prices fell this week owing to high wind generation and above average temperatures. LNG send-out and further deliveries helped the gas system remain comfortably supplied as month-ahead gas fell 1.3% to 53.6p/th. The Annual April 15 gas contract fell 2.6% to 52.5p/th, its lowest recorded level as falling oil continued to weigh on prices. Annual April 15 power followed its gas counterpart lower and hit a record low of £48.8/MWh. The annual April 15 clean spark spread gained 2% this week to reach £7.3/MWh, a seven-week high rose as annual gas prices fell faster than power. Coal prices continued on downward trends this week, dropping 2.5% to average $68.7/t as demand from core markets such as India and China continued to weaken. Brent crude oil was down 7.7% to average $60.7/bl as Saudi Arabia remained bullish over its oil production levels. In contrast, EU ETS carbon prices climbed 3.9% this week, averaging €6.91/t after continued progressive talks in the European Parliament surrounding market reforms.
Energy Wholesale Market Review Week Ending 19th December 2014.
Energy Wholesale Market Review Week Ending 12th December 2014
Gas and power prices have fallen this week owing to high gas supplies and continued falls in Brent crude oil. LNG send-out and further deliveries helped the system remain comfortably supplied as month-ahead gas fell 2.3% to 54.3p/th. The Annual April 15 gas contract fell 1.2% to 53.9p/th, its lowest recorded level as falling oil prices continued to weigh on prices. Annual April 15 power hit a record low of £49.6/MWh following the falls in gas. The annual April 15 clean spark spread gained 4% this week to reach £7.1/MWh a six-week high as annual gas prices fell faster than power. Brent crude oil fell to $63/bl, a new five-year low as OPEC reduced its estimate for 2015 demand and the Saudi Arabian oil minister suggested that there were no plans to cut production. Coal prices continued downward trends, declining 0.9% to average $70.4/t. Production cuts announced in Australia were not enough to curb oversupply in the market, as coal production has continued to increase elsewhere. Despite momentum on market reform, carbon prices dropped 3.4% to average €6.7/t.
Energy Wholesale Market Review Week Ending 12th December 2014.
Energy Wholesale Market Review Week Ending 5th December 2014
Despite rises in demand this week following colder temperatures, gas and power prices have fallen owing to high gas supplies and further falls in commodities. Further LNG deliveries helped the system remain comfortably supplied and month-ahead gas fell 6% to 55.6p/th. Month-ahead power followed lower dropping to £47.3/MWh. Annual prices were also down and were influenced by falls in oil and coal. Annual April 15 power hit a record low of £49.8/MWh. In spreads, the annual April 15 clean spark spread gained 34% this week to reach to £6.8/MWh, a five-week high, as gas prices fell faster than power. Brent crude oil fell to $69.1/bl, a new five-year low as Saudi Arabia cut prices, boosting speculation it is defending market share. Coal prices returned to downward trends, declining 2.6% to average $71.1/t. Production cuts announced in Australia were not enough to curb oversupply in the market. Despite momentum on market reform, carbon prices dropped 3% to average €6.9/t.
Energy Wholesale Market Review Week Ending 5th December 2014.
Written By Graham Paul
