Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 27th February 2015
Short-term power and gas contracts were mixed this week. Day-ahead gas climbed 5.1% to reach 52.7p/th as tensions between Russia and Ukraine influenced the market. Meanwhile, the prompt power contract was near-unchanged at £42.5/MWh this week, despite an increase in temperatures and wind generation. Long-term contracts were also mixed as small changes in commodity markets had little effect. Summer 15 gas gained 2.6% to 47.4p/th, with its power counterpart increasing 1.6% to £44.0/MWh. In commodities, Brent crude oil dropped 0.9% to average $60.3/bl over the week despite comments from Saudi Arabia’s oil minister suggesting that demand was on the rise. Carbon prices declined 2.0% despite a vote in the European Parliament by the environment committee this week backing the early implementation of the Market Stability Reserve.
Energy Wholesale Market Review Week Ending 27th February 2015.
Energy Wholesale Market Review Week Ending 20th February 2015
Prompt power and gas contracts reversed last week’s gains this week as high wind generation and further LNG deliveries influenced day-ahead contracts. Day-ahead gas declined 9.1% to 49.75p/th and its power counterpart dropped 3.4% to £42.50/MWh. Temperatures below seasonal normal levels curbed falls in the power market. Long-term gas contracts fell across the board, as short-term prices influenced along the curve. The annual April 15 gas contract lost 4.6% this week to 49.4p/th. Its baseload power counterpart followed lower, down 3.7% to £45.6/MWh. In commodities, Brent crude oil prices gained 5.3% to continue a recent rally in prices, despite US data showing record crude stock levels. Coal prices dipped slightly, averaging $62.8/t over the week, down 0.3% as freezing temperatures in Russia reduced activity at Baltic ports.
Energy Wholesale Market Review Week Ending 20th February 2015.
Energy Wholesale Market Review Week Ending 13th February 2015
Prompt power and gas contracts saw increased volatility this week as peace talks in Ukraine influenced markets. Below seasonal normal temperatures and low wind generation combined to push day-ahead prices up. Day-ahead gas climbed 11.1% to 54.75p/th and its power counterpart gained 3.5% to £44.00/MWh. Long-term gas contracts were up across the board, as short-term prices and bullish commodity markets influenced. The annual April 15 gas contract gained 7.2% this week to 51.8p/th. Its baseload power counterpart followed higher, rising 4.4% to £47.4/MWh. In commodities, coal prices continued to recover, averaging $63.0/t over the week. Month-ahead Brent crude oil prices gained 3.1% on news of industry spending cuts, which could curb excess supply. Prices rose above $60/bl for the first time since December this week as a weakened dollar supported prices.
Energy Wholesale Market Review Week Ending 13th February 2015.
Energy Wholesale Market Review Week Ending 6th February 2015
Seasonal gas contracts continued to increase this week as commodity markets reversed recent falls. Long-term gas contracts were up across the board, with the annual April 15 gas contract gaining 4.9% this week to 48.3p/th. Its baseload power counterpart followed higher, rising 3.5% to £45.4/MWh as increases in gas prices continued to influence. Short-term gas contracts continued to increase, as colder temperatures outweighed the return of Norwegian gas sites to the system. Day-ahead gas climbed 3.2% to 49.3p/th but day-ahead power dropped 0.5% to £42.5/MWh after last week’s sharp increases. In commodities, API 2 coal prices reversed recent bearish trends, averaging $61.5/t over the week, up 4.4%. Brent crude oil prices gained 15.1% this week on speculation that producers may be preparing to cut output. Prices were also influenced by news that 94 US oil rigs were taken offline during the week.
Energy Wholesale Market Review Week Ending 6th February 2015.
Written By Graham Paul
