Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 27th May 2016
Day-ahead gas gained 3.7% to 31.2p/th this week, as colder weather increased demand. Winter 16 gas rose 0.6% to 36.0p/th, with a rise in oil prices. Day-ahead power lost 4.0% to £32.8/MWh, as a greater proportion of nuclear generation offset a rise in demand, as well as a rise in gas prices. Winter 16 power went up 0.5% to £40.3/MWh, following oil prices higher. Brent crude oil lifted 0.5% to $49.0/bl. Prices hit a seven-month high of $50.1/bl on Thursday. On average oil prices grew 0.7% this week to average $49.0/bl, amid supply disruptions from wildfires in Canada, political unrest in Nigeria and Libya, as well as economic difficulties in Venezuela. API 2 coal climbed 3.1% to $48.5/t, as Europe’s coal stocks slipped to the lowest level of the year so far. EU ETS carbon rose 0.2% week-on-week to €6.0/t, however on average the price was 0.9% lower at €5.9/t. A falling power price and a rise in the coal price resulted in the day ahead clean dark spread turning negative and it is now -£0.4/MWh.
Energy Wholesale Market Review Week Ending 27th May 2016
Energy Wholesale Market Review Week Ending 20th May 2016
Day-ahead gas fell 2.9% to 30.1p/th this week, following an increase in LNG imports and a stronger pound. Winter 16 gas moved in the opposite direction to oil markets, dropping 1.6% to 35.8p/th. Day-ahead baseload power slipped 4.6% to £34.2/MWh following its gas counterpart lower. Winter 16 power reduced 0.7% to £40.1/MWh, following its gas counterpart lower. Brent crude oil gained 2.3% to $48.8/bl. The commodity experienced losses during the week as Iranian output soared. However, continued supply disruptions in Canada and Nigeria, as well as a drop in US production, supported prices. API 2 coal lifted 2.6% to $47.0/t. The price rise came in spite of weaker global demand for thermal coal. EU ETS carbon boosted 3.7% to €6.0/t, following other commodities higher. The French government announced on Tuesday 17 May that the French government will introduce a domestic carbon price floor of at least €30 per tonne of CO2.
Energy Wholesale Market Review Week Ending 20th May 2016
Energy Wholesale Market Review Week Ending 13th May 2016
Day-ahead gas gained 4.4% this week to 31.0p/th as reduced supplies pressured prices higher, following an outage at the St. Fergus terminal in Scotland. Winter 16 gas lifted 1.1% to 36.4p/th, following oil prices higher. Day-ahead power boosted 6.9% to £32.6/MWh as a dip in demand was not enough to offset a fall in wind output. Winter 16 power followed its gas counterpart higher, rising 1.0% to £40.4/MWh. Brent crude oil climbed 6.6% to $44.7/bl as the wild fires in Canada’s oil sands region continued to limit supplies. The removal of Saudi Arabia’s long-serving oil minister Ali al-Naimi has also created market uncertainty. API 2 coal reduced 2.0% to $45.8/bl after a rise in Columbian export rates to Asia, increasing competition with Australian exporters. EU ETS carbon moved 5.9% lower to €5.8/t. A French think-tank has urged the European Union to increase the ETS auction reserve price, under the Market stability Reserve, to €20/t.
Energy Wholesale Market Review Week Ending 13th May 2016
Energy Wholesale Market Review Week Ending 6th May 2016
Day-ahead gas dropped 2.3% to 29.7p/th this week as warmer weather reduced demand. Increased storage withdrawals also contributed to lower prices as Rough, the UK’s largest storage facility, came back online following a period of planned maintenance. Winter 16 gas gained 0.6% to 36.0p/th, despite a fall in oil prices. Day-ahead power gained 6.3% to £33.5/MWh, despite a fall in demand and higher wind output. Winter 16 power followed its gas counterpart higher, rising 0.9% to £40.0/MWh. Brent crude oil lost 7.5% to $44.7/bl. An 18 month low in US production, supply disruptions as a result of fighting in Libya and a major fire in Canada’s oil sand region did support prices early in the week. However, this was overshadowed by a rise in OPEC production. API 2 coal was 0.1% lower at $46.8/bl following weaker currencies against the US dollar in the six major coal producing countries. EU ETS carbon was down 2.9% to €6.1/t.
Energy Wholesale Market Review Week Ending 6th May 2016
Written By Graham Paul
