Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 24th April 2015
The annual October 15 power contract dropped 0.7% this week to £44.8/MWh and the annual October 15 gas contract fell 1.2% to 47.1p/th. Day-ahead gas prices declined 1.0% to 45.3p/th as temperatures remained above seasonal norms, holding down demand. The supply outlook is healthy and all other contracts along the forward curve decreased. The month-ahead contract slipped 1.4% to 44.3p/th, with more LNG deliveries to the UK scheduled next month. Day-ahead power was down 3.8% week-on-week to £42.5/MWh despite low wind generation, which reduced by 62% this week to 167GWh. All other contracts along the forward curve decreased with lower gas prices. Brent crude oil ended the week on $65.5/bl, a five-month high. Prices rose on the back of an economic intervention by the Chinese Central Bank and continuing conflict in Yemen. EU ETS carbon gained 4.0% this week, averaging €7.1/t. Prices were boosted by last-minute compliance buying.
Energy Wholesale Market Review Week Ending 24th April 2015.
Energy Wholesale Market Review Week Ending 17th April 2015
The annual October 15 power contract dropped 0.2% to £45.1/MWh this week and the annual October 15 gas contract decreased 0.4% to 47.6p/th. The day-ahead power contract was up 0.9% this week at £44.2/MWh, having been influenced by low wind generation. Other contracts along the forward curve to winter 15 were down following drops in gas prices. Temperatures were 18% above the seasonal norm this week, reducing system demand, and this led to a 4.3% decline in the day-ahead gas contract to 45.8p/th. Gas supply to the market is ample at present and this is likely to continue, with more LNG deliveries to the UK scheduled over the next month. The month-ahead gas contract was 2.3% lower this week at 44.9p/th. In commodities, Brent crude oil ended the week at $63.5/bl, a four-month high. Coal prices recovered from a five-year low last week and climbed 1.6% to average $56.9/t over the week, but the market remains oversupplied.
Energy Wholesale Market Review Week Ending 17th April 2015.
Energy Wholesale Market Review Week Ending 10th April 2015
All gas and power contracts decreased this week. Temperatures were above seasonal-norms and this resulted in lower gas demand: national system demand was down 15.1% and regional system demand was down 28.1% week-on-week. This pushed day-ahead gas prices down 1.0% to 47.8p/th. The annual October 15 gas contract slipped 1.3% to 47.8p/th. Day-ahead power was down 4.8% from last week to £43.8/MWh despite an 80% drop in wind generation from last week. All other power contracts along the forward curve followed their gas counterparts. The annual October 15 power contract declined 1.2% to £45.2/MWh. In commodities, Brent crude oil climbed 2.3% to average $57.2/bl after a US Energy Information Administration report raised its worldwide oil demand predictions. Coal prices continued their fall and hit a new five-year low of $55.4/t on Wednesday.
Energy Wholesale Market Review Week Ending 10th April 2015.
Written By Graham Paul
