Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 25th September 2015
Seasonal power and gas contracts slipped to record lows this week as bearish trends continued. Long-term gas contracts fell across the board with winter 15 gas down 1.4% to 42.8p/th, hitting a contract low of 42.7p/th on Tuesday. Confidence that LNG supplies will continue to increase has further weighed on gas prices. Seasonal power contracts followed lower, with winter 15 power sliding 0.7% to £43.25/MWh, reaching a fresh low of £43.2/MWh on Tuesday. Day-ahead gas prices were relatively unchanged, declining 0.1% to 41.0p/th, despite restricted Norwegian flows and higher gas demand supporting prices. Its baseload power counterpart dipped 0.9% to £42.7/MWh as lower demand and higher wind output later in the week suppressed prices. API 2 coal fell 1.9% this week to average $50.0/t, ending the week at $49.6/t, as contracting Chinese demand pulled prices lower. In contrast, Brent crude oil rose 0.2% to average $48.4/t, despite a turbulent week of price fluctuations.
Energy Wholesale Market Review Week Ending 25th September 2015.
Energy Wholesale Market Review Week Ending 18th September 2015
A subdued commodity environment continued to apply downwards pressure to power and gas prices this week. Long-term gas contracts were weighed on by lower oil prices, with winter 15 gas dropping 1.9% to 43.4p/th. Meanwhile, day-ahead gas slipped 1.2% to 41.0p/th as higher Norwegian and UKCS supplies (+19.5%) offset greater demand. Long-term power contracts followed gas and coal prices down, with winter 15 power trimming 0.9% to £43.6/MWh. In contrast, day-ahead power rose 2.0% to £43.1/MWh, as higher demand (+3.4%) and decreased wind generation at the end of the week boosted prices. Brent crude oil fell 0.7% to average $48.3/bl amid weakening Asian stock markets and OPEC members backing the group’s decision to maintain high production levels to protect market share. API 2 coal dropped 1.4% to $51.0/t as reducing global demand caused prices to slide further. EU ETS carbon prices were relatively stable, decreasing 0.1% to €8.2/t.
Energy Wholesale Market Review Week Ending 18th September 2015.
Energy Wholesale Market Review Week Ending 11th September 2015
Commodity and power prices returned to downward trends this week. All seasonal gas contracts declined, once again following oil prices lower. Winter 15 gas fell 1.1% to 44.2p/th. In addition, the day-ahead contract dropped 0.7% to 41.5p/th as higher temperatures (+15.3%) reduced demand, despite Norwegian outages restricting supplies. Power prices followed a similar pattern, with most seasonal contracts falling. Winter 15 power decreased 0.8% to £44.0/MWh. The day-ahead power contract fell 1.8% to £42.2/MWh, as decreased gas prices and higher wind output at the end of the week offset greater electricity demand (+2.6%). Brent crude oil dropped 3.9% this week to average $48.6/bl as data showed Chinese oil imports were down 13% in August compared with July and Saudi Arabia rejected proposals for a meeting to discuss low prices. API 2 coal slipped 2.1% this week to average $51.7/t, with Chinese imports down 18.0% in August compared to July.
Energy Wholesale Market Review Week Ending 11th September 2015.
Energy Wholesale Market Review Week Ending 4th September 2015
After a prolonged period of reductions, commodity and power prices rose this week. The majority of gas contracts climbed, with day-ahead gas surging 7.7% to 41.8p/th, a one-month high, as lower temperatures (-14.8%) and falling wind generation (-31.7%) increased demand. Winter 15 gas lifted 1.8% to 44.7p/th, as a recent rebound in oil prices provided support to gas contracts. Power prices followed gas contracts higher, with day-ahead power boosting 9.8% to a one-month high of £43.0/MWh, owing largely to decreased wind generation. Winter 15 power climbed 0.7% to £44.3/MWh as higher gas and coal prices put upward pressure on seasonal contracts. Brent crude oil gained 13.7% this week to average $50.6/bl, experiencing its first weekly rise in 11 weeks after OPEC signalled they might be willing to lower production levels. API 2 coal prices jumped 1.4% to average $52.8/t, the first weekly gain 8 weeks, as stock markets made small recoveries.
Energy Wholesale Market Review Week Ending 4th September 2015.
Written By Graham Paul
