Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 30th October 2015
Comfortable supplies pulled seasonal gas and power contracts down to record lows this week. Summer 16 gas fell 2.1% to 36.2p/th, as lower oil prices and an increasingly more comfortable supply picture weighed on the contract. Seasonal power contracts followed lower, with summer 16 power slipping 1.3% to a record low of £38.5/MWh. Spot gas and power contracts also declined. Day-ahead gas dropped 3.8% to a nine-week low of 37.80p/th amid milder temperatures and healthy supplies – five LNG tankers are expected to arrive in the UK within the next week. Day-ahead power also decreased, dipping 2.6% to £39.0/MWh with a 36.6% rise in wind output. Brent crude oil was down 1.3% to average $48.1/bl, hitting a six-week low of $46.8/bl on Wednesday, amid a continued global supply glut. EU ETS carbon lifted 1.7% this week to average €8.6/t, hitting a fresh three-year high of €8.7/t on Thursday afternoon, as the commodity experienced its fifth weekly gain in a row.
Energy Wholesale Market Review Week Ending 30th October 2015.
Energy Wholesale Market Review Week Ending 23rd October 2015
Commodity prices continued to descend this week, driving seasonal power contracts further down. Summer 16 gas dropped 2.5% to a new low of 37.0p/th, as a comfortable supply outlook and decreased oil prices weighed on the contract. Summer 16 power followed lower, trimming 1.5% to a contract low of £39.0/MWh. Spot gas and power contracts also declined. Day-ahead gas slipped 2.4% to 39.3p/th as higher temperatures (+17.7%) and greater wind generation (+50.1%) decreased demand. Meanwhile, day-ahead power slipped 1.1% to £40.1/MWh, reaching an eight week low of £38.6/MWh on Wednesday, with higher wind output and lower spot gas prices. Brent crude oil fell 2.9% to average $48.7/bl, as slowing Chinese economic growth and a rise in US crude inventory levels pulled prices down. API 2 coal dropped 1.9% to average $47.6/t amid a continued oversupplied market. EU ETS carbon lifted 0.7% to average €8.5/t, hitting a fresh three-year high of €8.6/t on Friday.
Energy Wholesale Market Review Week Ending 23rd October 2015.
Energy Wholesale Market Review Week Ending 16th October 2015
Seasonal power and gas contracts slipped to record lows this week, as prices returned to downward trends. Falling oil prices dragged the summer 16 gas contract down 3.7% to a fresh low of 37.9p/th, with a healthy supply outlook also weighing on prices. Summer 16 power followed gas and coal prices lower, trimming 2.2% to a contract low of £39.6/MWh. Despite rising demand, spot power and gas contracts fell this week. Day-ahead gas slipped 1.8% to 40.3p/th amid the arrival of ten LNG tankers in October so far. Day-ahead power subsided 4.7% to £40.5/MWh amid comfortable supply margins and lower spot gas prices. Brent crude oil decreased 2% this week to average $50.1/bl, after data showed an increase in OPEC production levels in September, with record Iraqi output. API 2 coal slid 1.2% to average $48.6/t as the slowdown in global economies exacerbated the supply glut. EU ETS carbon lifted 2.4% to average €8.4/t, reaching a three-year high of €8.5/t on Thursday.
Energy Wholesale Market Review Week Ending 16th October 2015.
Energy Wholesale Market Review Week Ending 9th October 2015
Power and commodity prices were driven upward this week, with higher demand and lower supplies a common theme. Gas contracts rose across the board following a boost in oil prices, with annual April 16 gas increasing 2.7% to 42.0p/th. The annual April 16 power contract followed its gas counterpart higher, lifting 1.7% to £42.7/MWh, also supported by a rise in coal prices. Day-ahead gas jumped 5.4% to 41.6p/th, as increasing gas demand left the system undersupplied for much of the week. Day-ahead power followed higher, gaining 7.9% to £42.5/MWh, as unplanned outages at coal-fired power plants and maintenance on the French interconnector tightened supplies. Brent crude oil surged 6.1% to average $51.2/bl, reaching a ten-week high of $53.6/bl on Friday, as data showed falling US production levels and Russia indicated they may be willing to reconsider their output strategy. API 2 coal prices lifted 1% to average $49.1/t on prospects of rising demand.
Energy Wholesale Market Review Week Ending 9th October 2015.
Energy Wholesale Market Review Week Ending 2nd October 2015
Seasonal gas and power prices fell to record lows this week as contracts moved into the new trading year. The annual April 16 gas contract dropped 2.2% to 40.9p/th, a fresh low, as falls in oil prices and a continued healthy supply outlook weighed on prices. Annual April 16 power followed its gas counterpart down, slipping 1.4% to £42.0/MWh. Spot power and gas contracts also decreased, with day-ahead gas subsiding 3.7% to 39.5p/th amid numerous LNG tankers scheduled to arrive in the first six days of October. Day-ahead power tumbled 7.6% to £39.4/MWh, a five-week low, as the return of multiple power stations after outages boosted supply margins. Brent crude oil declined 0.4% to average $48.2/bl, as global demand concerns continued. API 2 coal slipped 2.7% to average $48.6/t, as a sluggish Chinese economy pulled prices even lower. In contrast, EU ETS carbon prices gained 0.2% to average €8.1/t.
Energy Wholesale Market Review Week Ending 2nd October 2015.
Written By Graham Paul
