Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 29th May 2015
The annual October 15 power contract was unchanged this week at £44.0/MWh but the corresponding gas contract slipped 0.2% to 45.8p/th with the gas supply outlook remaining healthy. Power contracts in the forward quarter increased, with the day-ahead contract up 4.5% to £41.0/MWh as a result of lower wind generation and higher demand on Friday. The day-ahead gas contract rose 1.4% to 43.2p/th as unplanned outages on Norwegian gas fields restricted supply and temperatures stayed below the seasonal norm. Exports of gas to Europe continued this week as GB, Belgian, and Dutch prices remain converged. The clean dark spread was 3.2% less at £8.4/MWh due to a gain in the coal price on Friday. The clean spark spread was 1.3% wider this week at £3.9/MWh as a result of the reduction in the annual gas contract. Brent crude oil decreased 2.2% to average $64.0/bl across the week as the market remains oversupplied.
Energy Wholesale Market Review Week Ending 29th May 2015.
Energy Wholesale Market Review Week Ending 22nd May 2015
The annual October 15 power contract decreased 1.7% from last week to £44.0/MWh, following the annual gas contract and coal prices downwards. The annual October 15 gas contract declined 2.5% to 45.9p/th. All gas contracts along the forward curve dropped with a healthy supply outlook. The day-ahead contract was down 5.3% to 42.6p/th as rising temperatures resulted in lower demand. Dutch and Belgian power prices saw large decreases this week as high imports from France and Germany, as well as an outage on the Britned interconnector, resulted in oversupply. The annual October 15 clean dark spread was 4.5% less at £8.7/MWh as the fall in the annual power contract exceeded the reduction in coal price. The corresponding clean spark spread gained 3.8% to £3.9/MWh as the loss in the gas contract outweighed the slide in the annual power contract. Brent crude oil was down 1.5% this week as the market remains oversupplied.
Energy Wholesale Market Review Week Ending 22nd May 2015.
Energy Wholesale Market Review Week Ending 15th May 2015
Annual October 15 power and gas contracts were unchanged from last week at £44.8/MWh and 47.1p/th respectively. Trends along the gas forward curve were mixed, with prices in the forward quarter being supported by an increase in gas demand for power generation. The month-ahead contract gained 1.0% to 42.7p/th. Most power contracts followed their gas counterparts but the biggest gain was seen in the day-ahead contract, which rose 3.8% to £41.5/MWh as wind generation dropped. The annual October 15 clean dark spread gained 1.6% this week to £9.1/MWh as coal prices fell but the annual power price was unchanged. The annual October 15 clean spark spread was remained at £3.7/MWh this week. EU ETS carbon reached a three-month high of €7.7/t on Tuesday after the EU Council approved the draft Market Stability Reserve bill.
Energy Wholesale Market Review Week Ending 15th May 2015.
Energy Wholesale Market Review Week Ending 8th May 2015
The annual October 15 gas contract climbed 0.2% this week to 47.1p/th but trends along the forward curve were mixed. Prices were supported during the week by reduced nuclear availability, which caused an increase in gas demand for power generation. But a rise in week-on-week temperatures held down short-term prices, with the day-ahead contract slipping 0.3% to 44.4p/th. Most power contracts saw slight decreases this week, with a 0.1% decline in the annual October 15 contract to £44.8/MWh. Falls were largest in the short-term contracts, with the day-ahead contract dropping 2.4% to £40.0/MWh under the influence of higher wind generation. Brent crude oil peaked at $69.4/bl on Wednesday, a five-month high, following the first decrease in US inventories for four months. EU ETS carbon climbed for the fourth week in a row and reached a ten-week high of €7.6/t on Wednesday after the European Parliament and Council agreed on a text for the Market Stability Reserve bill.
Energy Wholesale Market Review Week Ending 8th May 2015.
Energy Wholesale Market Review Week Ending 1st May 2015
Shorter-term power contracts decreased this week, as a comfortably supplied gas system and a two-fold increase in wind generation helped lower prices. Day-ahead power dropped to a four-week low of £41.0/MWh, while day-ahead gas shed 1.7% to 44.6p/th. Longer-term contracts were more mixed. Winter 15 gas dropped 0.2p/th to 49.3p/th as the medium-term supply outlook remained comfortable. However, the falls did not translate into winter 15 power, which was pushed higher by rising coal and carbon prices, as commodities continued their bullish momentum this week. EU ETS carbon prices hit a 10-week high of €7.5/t as member states agreed to negotiate on a 2019 start date for proposed market reforms, while Brent crude oil prices also climbed 3.5% over the week to reach a 2015 high of $66.4/bl. Prices rose following news of reducing oil inventories in the US. The 20% gains through April represent the largest monthly rise in six years.
Energy Wholesale Market Review Week Ending 1st May 2015.
Written By Graham Paul
