Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 29th April 2016
Day-ahead gas was unchanged at 30.4p/th this week, despite a rise in demand as well as a rise in oil prices. Winter 16 gas lifted 3.2% to 35.8p/th, following oil prices higher. Day-ahead power fell 7.1% to £31.5/MWh as forecast demand dropped. Winter 16 power followed its gas counterpart higher, up 2.1% to £39.7/MWh. Brent crude oil continued to rise, gaining 8.9% to reach a new five-month high of $48.4/bl, as a weakened US dollar and falling non-OPEC production continued to support prices. API 2 coal also experienced gains this week, improving 3.4% to $46.8/t. Coal markets remain oversupplied, but tightening supplies are forecast after a series of high profile bankruptcies has led to a number of mine closures. EU ETS carbon moved 10.9% higher this week to €6.3/t after Europe’s highest court ordered a recalculation of free ETS allocations to 2020.
Energy Wholesale Market Review Week Ending 29th April 2016
Energy Wholesale Market Review Week Ending 22nd April 2016
Day-ahead gas gained 8.6% to 30.4p/th this week as a series of unplanned pipeline outages reduced flows. Winter 16 gas improved 6.8% to 34.7p/th, following oil prices higher. Day-ahead baseload power lifted 1.1% £33.9/MWh as lower wind output, as well as a number of plant outages, pressured prices higher. Winter 16 power boosted 4.6% to £38.9/MWh, following a rise in its gas counterpart. Brent crude oil was up 0.1% to average $43.4/bl after the International Energy Agency predicted that non-OPEC production would fall to its lowest levels in over two decades. API 2 coal gained 6.3% to average $44.9/bl as supplies are expected to tighten following a series of bankruptcies amongst a number of major private producers. EU ETS carbon fell 0.1% on average to €5.5/t, but ended the week at over a two and half month high of €5.7/t after a record high German auction result on Thursday.
Energy Wholesale Market Review Week Ending 22nd April 2016
Energy Wholesale Market Review Week Ending 15th April 2016
Day-ahead gas hit a new six year low of 27.0p/th on Monday, but ended the week up 1.8% at 28.0p/th as unplanned disruptions to Norwegian pipeline imports pushed prices higher. Winter 16 gas lifted 0.2% to 32.4p/th, with a rise in oil prices. Day-ahead power jumped 6.8% to £33.6, following a drop in wind output. Winter 16 power moved in the opposite direction to its gas counterpart, losing 0.1% to £37.2/MWh. Brent crude oil surged 11.2% this week to $43.3/bl ahead of this Sunday’s supply freeze talks. Global demand for oil continued to fall, as a number of major economies showed signs of slowing, but was offset by signs that US production is also slowing. API 2 coal boosted 2.5% this week to $42.2/t, but sustained low prices have taken their toll on Peabody, America’s largest producer, which filed for bankruptcy on Wednesday. EU ETS carbon continued to rise week on week, up 5.4% to €5.6/t.
Energy Wholesale Market Review Week Ending15th April 2016
Energy Wholesale Market Review Week Ending 8th April 2016
There was a general downward trend in energy markets this week. Day-ahead gas fell 5.5% to 27.5p/th as warmer weather reduced demand for heating. The contract is now at its lowest level since December 2009. Winter 16 gas reduced 2.6% to 32.4p/th, following a drop in oil prices. Day-ahead power followed its gas counterpart lower, slipping 10.0% to £31.4/MWh, despite a drop in wind output. Winter 16 power held steady at £37.20/MWh, despite the fall in its gas counterpart. Brent crude oil declined 1.4% to average $39.0/bl this week after Iran considerably increased production. Prices did experience gains during the middle period of the week, following a reported drop in US crude inventories, but ended the week down overall. EU ETS carbon surged 7.1% to average €5.3/t. API 2 coal continued to suffer, down 0.7% to$41.2/t as demand for the commodity continued to fall.
Energy Wholesale Market Review Week Ending 8th April 2016
Energy Wholesale Market Review Week Ending 1st April 2016
There was a mixed picture in the energy markets this week. Day-ahead gas was unchanged at 29.1p/th despite milder weather. Day-ahead power surged 10.9% to £35.0/MWh, despite higher wind generation as demand returned from bank holiday levels. Along the forward curve, winter 16 gas followed oil prices lower, losing 0.3% to 32.1p/th. In turn, winter 16 power followed its gas counterpart lower, down 2.6% to £37.2/MWh, despite a forecast of tight capacity margins. Brent crude oil lost 2.9% this week to average $39.5/bl. The dollar priced commodity experienced gains early in the week amid a weakened US dollar, but began falling by mid-week as reported US crude inventories hit record highs. EU ETS carbon gained 2.3% to average €4.9/t. Prices moved back above €5/t on Thursday amid traders short-covering ahead of Friday’s ETS emissions data release. The commodity ended the week at €5.13/t. API 2 coal lifted 0.1% to $41.5/t.
Energy Wholesale Market Review Week Ending 1st April 2016
Written By Graham Paul