Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 18th March 2016
All seasonal contracts along the forward curve experienced gains this week. Summer 16 gas lifted 0.9% to 27.6p/th on account of low LNG imports to the UK. Summer 16 power boosted 1.0% to £31.8/MWh, following its gas counterpart higher. Day-ahead gas fell 0.7% to 29.6p/th this week, despite tight supply margins. Higher temperatures resulted in lower demand. Day-ahead power was down 9.7% to £34.3/MWh this week, following its gas counterpart lower. A drop in demand outweighed a large fall in wind output. Commodity prices were down overall by week-end. Brent crude oil fell 0.6% to $40.1/bl. However, news of production freeze talks between OPEC and non-OPEC producers did lead to the contract hitting a 14-week high of $42.0/bl by the end of the week. EU ETS carbon reduced 2.1% to €4.9/t. Prices have however recovered enough during the recent days to push the price back above €5/t. API 2 coal fell 0.8% to $40.8/t.
Energy Wholesale Market Review Week Ending 18th March 2016
Energy Wholesale Market Review Week Ending 11th March 2016
Seasonal power and gas contracts rose across the board this week, as bullish global commodity markets supported prices. Seasonal gas prices gained 1.1% on average, with the summer 16 contract rising 1.1% to 27.3p/th. Gas prices followed oil markets higher, but rises were suppressed by record high gas flows into Europe from Norwegian and Russian sources. Seasonal power contracts rose with their gas counterparts, as summer 16 power gained 1.6% to reach £31.5/MWh. The spot market was mixed, with the day-ahead gas contract falling 2.1% to 29.8p/th while day-ahead power surged 8% higher to £38.0/MWh. The power contract was influenced by low wind generation and temperatures 40% below the seasonal norm. Commodities continued their recent bullish trend, Brent crude oil surged 10% to a 2016 high of $40.3/bl as IEA data showed further falls in non-OPEC production levels. API 2 coal was up 6.6% to $41.2/t, EU ETS carbon gained 2.5% to €5.0/t.
Energy Wholesale Market Review Week Ending 11th March 2016
Energy Wholesale Market Review Week Ending 4th March 2016
Seasonal power and gas contracts returned to their downward trend this week. Summer 16 gas dropped 4.1% to 27.0p/th as an increasingly more comfortable supply outlook weighed on prices. LNG imports into the UK were up by 52.5% year-on-year in Q415, and this trend is likely to continue. Seasonal power contracts followed gas prices lower, with summer 16 power falling 2.2% to £31.0/MWh. In contrast, spot gas and power contracts increased. Day-ahead gas rose 0.8% to 30.5p/th with both cooler weather and reduced wind output expected early next week. Day-ahead power climbed 3.0% to £35.2/MWh as with supply margins are forecast to tighten for next Monday. Brent crude oil gained 6.8% to reach a two-month high average of $36.5/bl amid falling US crude production levels. API 2 coal dipped 0.4% to average $38.6/t as weaker European demand levels have weighed on prices. EU ETS carbon declined 3.0% to average €4.9/t, the lowest weekly average since April 2014.
Energy Wholesale Market Review Week Ending 4th March 2016
Written By Graham Paul
