Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 31 July 2015
Seasonal gas and power contacts decreased this week, following oil and coal prices lower. Winter 15 gas dropped 0.1% to 56.0p/th. The contract initially rose as storage restrictions at the Rough facility were announced to last until the end of summer 2016, before falling back down with lower oil prices. The winter 15 power contract followed gas and coal prices down, slipping 0.1% to £45.0/MWh. In contrast, day-ahead gas rose: the contact lifted 2.9% to average 43.7p/th, as lower Norwegian imports and higher injections into storage on Friday increased prices. Brent crude oil dropped 5% to average $53.4/bl, reaching a six-month low on Tuesday of $52.9/bl. A further contraction of the Chinese stock market and OPEC announcing they are not cutting production levels pushed prices higher. API coal followed oil down, slipping 1.5% to $56.6/t, reaching a fifteen-week low of $56.35/t on Tuesday.
Energy Wholesale Market Review Week Ending 31st July 2015.
Energy Wholesale Market Review Week Ending 24th July 2015
Seasonal gas and power contracts decreased to reach new lows this week, as contracts followed oil and coal prices downwards. Winter 15 gas was down 1.5% to 46.0p/th this week, and fell to 45.7p/th on Thursday afternoon, the lowest winter contract price since 2010. Falls were pressured as the Oil and Gas Authority approved an additional 15bcf of storage at Rough with immediate effect. Day-ahead gas fell 3.1% to 42.4p/th as Norway’s Troll gas field and the St Fergus gas terminal returned after ongoing outages. Winter 15 power dropped 0.4% to £45.1/MWh, falling to £44.8/MWh on Thursday afternoon. An unexpected rise in US crude oil inventory levels and a contraction of the Chinese economy weighed on oil prices. Brent crude oil fell 2.3% to average $56.2/bl. EU ETS carbon rose to €8.0/t, reaching €8.1/t on Thursday, the highest price since November 2012. API coal dropped 0.9% to average $57.5/t, and hit an eight-week low of $56.9/t on Friday.
Energy Wholesale Market Review Week Ending 24th July 2015.
Energy Wholesale Market Review Week Ending 17th July 2015
Oil, coal, gas and power contracts all saw decreases this week, with seasonal power and gas contracts reaching record-lows. The winter 15 power contract fell 1.1% to £45.25/MWh, the lowest price since the contract began. Its gas counterpart also dropped to a record low, as winter 15 gas fell 2.1% to 46.8p/th. This was despite storage worries as gas injections at Rough continue to slow. The day-ahead gas contract fell 2.1% to 43.8p/th as the system became more comfortably supplied with UKCS deliveries toward the end of the week. In contrast, day-ahead power rose 0.4% to £42.7/MWh with unplanned outages at Aberthaw and Staythorpe on Friday. Brent crude oil lost 0.9% this week, averaging $57.5/bl, following an Iranian nuclear deal sealed on Monday. EU ETS carbon prices have climbed 3.5% this week, averaging €7.7/t. Carbon reached a five-month high of €7.8/t on Wednesday afternoon.
Energy Wholesale Market Review Week Ending 17th July 2015.
Energy Wholesale Market Review Week Ending 10th July 2015
Seasonal power contracts fell to record-lows this week following decreases in oil, coal and gas prices. The winter 15 power contract dropped to £47.4/MWh on 7 July, its lowest recorded level. The contract followed its gas counterpart lower, with winter 15 gas falling 0.7% to 47.8p/th. The annual October 15 power contract is now at £44.0/MWh, 14.7% below its value last year. In contrast, shorter-term gas and power contracts rose as an undersupplied gas system, following unplanned outages, pushed prices higher. The day-ahead gas contract climbed 2.3% to 44.7p/th, a five-week high. Brent crude oil decreased 7.4% this week to average $58.0/bl as a reduction in the Chinese stock market and the potential lifting of Iranian export sanctions held down prices. On Wednesday 8 July, the European Parliament approved the Market Stability Reserve. Carbon prices responded by climbing 0.6% during the week to average €7.5/t, although they remain low.
Energy Wholesale Market Review Week Ending 10th July 2015.
Energy Wholesale Market Review Week Ending 3rd July 2015
Weather was the major driver of short-term gas and power prices this week. The day-ahead gas contract slipped 0.1% to 43.7p/th as average temperatures in the UK jumped by 30.8% to 20.8°C and were 19.5% above the seasonal norm. Prices were supported at the end of the week by restricted supply from Norway, including planned maintenance at the giant Troll gas field. All other gas contracts along the forward curve increased, with the annual October 15 gas contract gaining 0.7% to 45.9p/th. Power contracts followed the trends seen in their gas counterparts. The annual October 15 power contract climbed 0.5% to £44.2/MWh. Day-ahead power was down 0.4% at £42.3/MWh with a week-on-week rise in wind generation of 38.9%. The power price fell despite higher demand. Peak power demand hit 38.3GW on Thursday, up 2GW on the week before. Brent crude oil lost 1.7% this week and averaged $62.6/bl as the Greek debt crisis and Iranian nuclear negotiations continue.
Energy Wholesale Market Review Week Ending 3rd July 2015.
Written By Graham Paul
