Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 26th June 2015
The annual October 15 power contract increased by 0.2% this week to £44.0/MWh but the corresponding gas contract slipped by 0.1% to 45.6p/th. Most gas contracts along the forward curve saw slight gains this week, with the day-ahead contract up 0.8% to 43.8p/th. Prices were lifted by the reopening of the UK-Belgium interconnector on Thursday after two weeks offline for maintenance, which boosted export levels. Day-ahead power declined 0.5% to £42.5/MWh with interconnectors close to capacity for much of the week. Most other forward power contracts climbed with higher coal and gas prices. The annual clean spark spread widened by 2.3% this week to £4.0/MWh and the annual clean dark spread shortened by 4.7% to £7.9/MWh. Brent crude oil lost 0.4% to average $63.7/bl across the week as the risk of a Greek debt default and the possible removal of Iranian export sanctions weighed on prices.
Energy Wholesale Market Review Week Ending 26th June 2015.
Energy Wholesale Market Review Week Ending 19th June 2015
The annual October 15 power contract slipped 0.5% this week to £43.9/MWh and the corresponding gas contract declined 0.6% to 45.7p/th. The day-ahead power contract climbed 1.1% as a result of falling wind generation, but most other power contracts along the forward curve were down this week following lower gas prices. The day-ahead gas contract fell to a 10-month low of 41.9p/th on Thursday, with the winter 15 contract hitting an all-time low of 47.4p/th on the same day. Prices recovered on Friday due to an increase in gas demand for power generation and a reduction in Dutch imports. In commodities, Brent crude oil lost 1.4% this week, averaging $64.0/bl, as the US dollar strengthened against other currencies, coal prices gained 1.7% to $58.6/t, and EU ETS carbon was 0.1% less at €7.5/t as liquidity in the market remains low. The clean spark spread widened by 0.4% this week to £3.9/MWh but the clean dark spread decreased by 1.6% to £8.1/MWh.
Energy Wholesale Market Review Week Ending 19th June 2015.
Energy Wholesale Market Review Week Ending 12th June 2015
Power prices fell this week, as contracts followed downwards movements in the gas market. Gas contracts fell across the board as a supply surplus, caused by falling demand and a curtailment in Belgian exports due to interconnector maintenance, pulled spot prices down and influenced along the curve. Day-ahead gas dropped 2.3% to 43.4p/th, while winter 15 gas shed 0.3% to 48.0p/th. Power contracts followed lower, with reductions in gas feeding into short and long-term contracts. Month-ahead power dropped 0.2% to £41.1/MWh and winter 15 power fell £0.1/MWh to £45.9/MWh. The winter 15 contract is now 1.2% below its level last month (£46.5/MWh). In commodities, Brent crude oil climbed 1.5% to $64.9/bl as US stock drawn down rose to an annual high. EU ETS carbon prices continued recent upward momentum, as prices rose to a four-week high of €7.6/t in the week ahead of the market reforms vote on 6 July.
Energy Wholesale Market Review Week Ending 12th June 2015.
Energy Wholesale Market Review Week Ending 5th June 2015
All power and gas contracts increased this week. The annual October 15 power contract rose 0.9% to £44.4/MWh as it followed the corresponding gas contract and coal prices higher. The annual October 15 gas contract also gained 0.9%, to 46.2p/th, as seasonal contracts took the direction of their short-term gas counterparts. The day-ahead gas contract lifted by 2.7% to 44.4p/th, with the system undersupplied for most of the week. There was a drop in Norwegian imports as supplies were redirected to continental Europe. Temperatures climbed 18.0% week-on-week but were still 9.5% below the seasonal norm, which held demand up. The day-ahead power contract jumped 4.9% to £43.0/MWh after a fall in wind generation as the week progressed. Week-on-week Brent crude oil prices were relatively stable, slipping only 0.2% to $63.9/bl. On Friday, OPEC ministers agreed to continue their high output strategy as they seek greater market share.
Energy Wholesale Market Review Week Ending 5th June 2015.
Written By Graham Paul
