Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th August 2015
Power and gas prices were turbulent this week, with contracts on the near-curve rising, while further-out contracts experienced falls. Winter 15 gas fell to a contract low of 43.1p/th on Monday, influenced by declining oil prices, but ended the week up 0.4% at 43.9p/th. Day-ahead gas lifted 2.1% to 38.8p/th as lower temperatures increased demand. Winter 15 power also fell to a contract low on Monday at £43.6/MWh, following large drops in coal and gas prices, but finished the week 0.3% higher at £44.0/MWh. Day-ahead power rose with its gas counterpart, lifting 1.1% to £39.1/MWh. Brent crude oil slipped 7.0% to average $44.5/bl, reaching a low of $43.4/bl on Monday, the lowest price since March 2009. Prices initially fell due to a large drop in the Chinese stock market, but recovered to $47.7/bl on Friday. API coal fell 1.8% to average $52.1/t, hitting its lowest level in over a decade on Monday at $51.6/t. Global stock markets were the key driver of commodity prices this week.
Energy Wholesale Market Review Week Ending 28th August 2015.
Energy Wholesale Market Review Week Ending 21st August 2015
High supplies, low demand and declining prices were the major themes of this week’s report. All gas contracts along the forward curve fell this week, with day-ahead gas down 6.5% to 38.0p/th, hitting a one-year low of 37.8p/th mid-week. Greater LNG imports––up 64.7%––were the main contributor weighing on the contract. Winter 15 gas slipped 1.8% to 43.7p/th, as declining prompt prices fed through to the forward curve. Day-ahead power tumbled 7.7% to £38.7/MWh, an eight-month low, driven by lower gas prices. Furthermore, winter 15 power hit a fresh-low of £43.7/MWh, ending the week at £43.9/MWh, as curtailing coal prices pulled the contract lower. Brent crude oil subsided 3.4% to average $47.8/bl, reaching a low of $45.3/bl on Friday afternoon, the lowest price since February 2009. API coal slid 2.5% to average $53.1/t, and was down to $52.5/t on Thursday, the lowest price in over a decade. EU ETS carbon lifted to €8.3/t mid-week, and averaged €8.3/t.
Energy Wholesale Market Review Week Ending 21st August 2015.
Energy Wholesale Market Review Week Ending 14th August 2015
Front season gas and power contracts experienced small losses this week alongside declining oil and coal prices. Winter 15 gas dropped 0.7% to 44.5p/th, as increased storage injections boosted the winter supply outlook and falls in prompt prices fed through to the forward curve. Day-ahead gas decreased 0.4% to 40.7p/th with greater LNG deliveries and UKCS supplies. The contract hit a one-year low of 40.5p/th on Thursday. Winter 15 power lowered 0.2% to £44.4/MWh, influenced by its gas counterpart and a decline in coal prices. However, day-ahead power was unchanged at £42.0/MWh. Brent crude oil fell 1.2% to average $49.5/t, hitting a six-month low of $49.2/bl on Friday, as a significant depreciation of the Chinese yuan lowered expected demand. Coal prices dipped 2.2% to $54.4/t, reaching a low of $54.0/t on Thursday, the lowest price on our records since January 2006. EU ETS carbon lifted 1.7% this week to average €8.02/t, and rose to a high of €8.21/t on Thursday.
Energy Wholesale Market Review Week Ending 14th August 2015.
Energy Wholesale Market Review Week Ending 7th August 2015
Seasonal gas and power contracts followed oil and coal prices lower this week. Winter 15 gas slipped 2.6% to 44.8p/th, hitting a record low of 44.3p/th on Wednesday. Prices were driven by falling oil prices and a drop in prompt contracts, which fed though to the forward curve. Winter 15 power declined 1.1% to £44.5/MWh. The contract followed its gas counterpart down and was weighed on by declining coal prices. Day-ahead gas tumbled 6.5% to a one-year low of 40.8p/th, as falls in gas demand for power generation and a rise in forecast wind output left the system long. In contrast, day-ahead power rose 3.0% to £42.0/MWh. Brent crude oil curtailed 6.2% to average of $50.1/bl, hitting a six-month low of $49.4/bl on Thursday. A decline in Chinese manufacturing activity and a rise US gasoline stocks indicated a lower demand outlook for crude oil. API coal subsided 1.7% this week to average $55.6/t, sliding to $55.3/t on Friday, the lowest price on our records since January 2006.
Energy Wholesale Market Review Week Ending 7th August 2015.
Written By Graham Paul
