Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 26th February 2016
All seasonal power contracts increased this week, following the commodity markets higher. Summer 16 power was up 1.1% to £31.7/MWh, following a rise in its gas counterpart. Summer 16 gas gained 1.8% to reach 28.2p/th, supported by a boost in oil prices. Spot contracts also climbed, day-ahead power gained 6.8% to £34.2/MWh, as spot gas contracts also increased. Average wind output was higher this week, but was lowest on days experiencing higher demand, helping to push prices higher. Day-ahead gas rose 2.9% to reach 30.2p/th, despite an overall fall in demand. Brent crude oil continued to climb, gaining 1.0% to reach $34.2/bl, an eight-week high. Prices rose amid renewed hopes of a freeze in production. However, rises were subdued by high US crude inventory levels which climbed this week, further adding to the global oil glut. EU ETS also continued to climb, lifting 0.1% to reach €5.1/t. API 2 coal was up 3.7% to $38.8/t as cuts in supply pressured prices higher.
Energy Wholesale Market Review Week Ending 26th February 2016
Energy Wholesale Market Review Week Ending 19th February 2016
Most seasonal power contracts increased this week, following the commodity market higher. Summer 16 power was up 1.6% to £30.8/MWh, following a rise in its gas counterpart. Summer 16 gas gained 1.6% to reach 27.68p/th, supported by a boost in oil prices. Day-ahead power experienced the biggest decrease, dropping 5.3% to £32.0/MWh, despite falls in wind output and a rise in its gas counterpart. Day-ahead gas climbed 1.2% to reach 29.4p/th, as disruptions to a number of supply terminals pressured prices. This was despite strong gas supplies from LNG and storage. Brent crude oil surged 6.3% week on week as a number of countries, including Iran, floated the possibility of a freeze in production. In addition US crude inventory levels continued to climb this week, further adding to the global oil glut. EU ETS carbon moved away from its downward trend, lifting 1.5% to reach €5.06/t. API 2 coal also increased, gaining 0.5% to reach $37.40/t.
Energy Wholesale Market Review Week Ending 19th February 2016
Energy Wholesale Market Review Week Ending 12th February 2016
Seasonal gas and power contracts continued on their downward trends this week as falling commodity markets continued to pressure prices. Summer 16 gas dropped 1.6% to 27.2p/th as lower oil prices and a strong UK supply picture weighed on the contract. Summer 16 power followed its gas counterpart down, slipping 3.0% to £30.8/MWh. This was despite the likely closure of several coal-fired power stations early this summer, tightening supply margins further. In contrast, spot gas and power contracts increased. Day-ahead gas rose 0.7% to 29.0p/th, despite strong LNG supplies from Qatar and production starting at Total’s new Laggan-Tormore gas field. Day-ahead power followed, rising 6.3% to £33.8/MWh, with supply margins forecast to tighten early next week. Brent crude oil fell 7.4% to $31.9/bl as record high US crude inventory levels weighed on prices. EU ETS carbon tumbled 12.4% to reach €5.0/t, the lowest price since May 2014. API 2 coal declined 4.0% to $37.2/t.
Energy Wholesale Market Review Week Ending 15th February 2016
Energy Wholesale Market Review Week Ending 5th February 2016
Seasonal gas and power contracts returned to downward trends this week, despite a boost in oil prices. Summer 16 gas dropped 5.5% to 27.7p/th as a strong European gas and LNG supply outlook continued to pressure prices. Most seasonal power contracts followed gas prices lower, with summer 16 power down 3.2% to £31.7/MWh. However, winter 16 power was unchanged at £38.1/MWh amid news of the likely closure of three out of four generation units at the 2GW Fiddler’s Ferry power plant. Spot gas and power prices also fell. Day-ahead gas slipped 5.1% to 28.8p/th amid greater LNG imports, while day-ahead power slid 1.7% to £31.8/MWh. Brent crude oil climbed 7.0% to average $34.4/bl, hitting a four-week high of $35.8/bl on Monday, despite forecasts that global oversupply will continue throughout 2016. EU ETS carbon prices declined 5.4% to average €5.7/t, hitting a low of €5.5/t on Friday, the lowest price since July 2014.
Energy Wholesale Market Review Week Ending 5th February 2016
Written By Graham Paul
