Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 24th June 2016
Throughout the week commodity prices were influenced leading up to the UK’s EU referendum. Following the announcement on Friday that the UK had voted to leave the EU, day-ahead gas gained due to increased trading and a weaker pound. This week, winter 16 gas gained 8.1% to 43.7p/th, as Rough gas facility operations were stopped. EU ETS carbon dropped 11.9% to €5.0/t, with prices expected to depress further due to the economic impact of the UK leaving the EU. Week-on-week Brent crude oil price climbed 1.1% to $48.6/bl, and on average gained 2.0% to $50.1/bl. Following the referendum results, oil prices to lowered $2.06/bl to $48.56/bl, and there are fears of economic slowdown that could reduce oil demand. The average price of all power and gas contracts rose. Day-ahead power went up 1.9% to £37.0/MWh, despite increased wind power and lower demand. Week-on-week API 2 coal rose 1.0% to $55.5/t, on Monday 20 June prices reached the highest price since July 2015.
Energy Wholesale Market Review Week Ending 24th June 2016
Energy Wholesale Market Review Week Ending 17th June 2016
The average price of most power and gas contracts rose this week, with an increase in both power and gas demand due to lower temperatures. Winter 16 gas grew 3.6% to 40.4p/th, but prices remain relatively low compared to last year. In contrast, day-ahead power lost 4.5% to £36.3/MWh, amid an increase in wind generation of 10.7% and a decrease in coal–fired output by 8.3%. Week-on-week Brent crude oil slipped 6.2% to $48.0/bl and on average lost 4.3% to $49.1/bl. Oil prices hit a five-week low on Thursday 16 June of $47.3/bl, weighed down by a strong dollar, weak Asian trade, continued global oversupply and uncertainty in the market over Britain’s possible exit from the EU. Week-on-week API 2 coal gained 5.7% to $55.0/t, however on average prices were down 1.0%. On Friday 17 June coal prices reached $55.0/t, the highest price in over ten months. EU ETS carbon prices declined 4.5% to €5.7/t.
Energy Wholesale Market Review Week Ending 17th June 2016
Energy Wholesale Market Review Week Ending 10th June 2016
Most longer term power and gas contracts rose this week, following oil and coal markets higher. Winter 16 gas grew 2.8% to 39.0p/th, with a climb in oil prices. Winter 16 power rose 2.8% to £42.8/MWh, following gas prices higher. Day-ahead gas lost 2.2% to 33.8p/th, as demand fell due to a rise in temperatures. In contrast, day-ahead power gained 3.0% to £38.0/MWh, amid a decrease in wind generation of 69.0% and an increase coal fired output by 66.3%. Week-on-week Brent crude oil jumped 2.1% to $51.2/bl, and on average gained 3.5% to $51.3/bl. Prices hit a near eight-month high on Wednesday afternoon of $52.4/bl due to a weaker dollar, further militant attacks on oil infrastructure in Nigeria, supply outages in Canada, stronger Chinese demand and falling US inventories. Week-on-week API 2 coal slipped 0.5% to $52.0/t, however over the week average prices were up 6.4%. On Tuesday 7 June coal prices reached $54.60/t, the highest price since August 2015. EU ETS carbon gained 0.5% to €6.0/t.
Energy Wholesale Market Review Week Ending 10th June 2016
Energy Wholesale Market Review Week Ending 3rd June 2016
Day-ahead gas gained 10.6% to 34.5p/th, despite an increase in temperatures. Winter 16 gas rose 5.5% to 38.0p/th, with a rise in oil prices. Day-ahead power gained 12.5% to £36.9/MWh, with a rise in gas prices. Winter 16 power went up 3.2% to £41.6/MWh, following oil prices higher. On average Brent crude oil lifted 1.2% to $49.6/bl, on Friday 3 June prices hit a seven month high. Oil prices rose leading up to the OPEC meeting on the 2 June and afterwards further increased, due to further supply disruptions from conflicts in Nigeria. API 2 coal climbed 7.8% to $52.3/bl. On Friday 3 June, API 2 coal climbed to $52.3/t, the highest price since September 2015, amid falling Chinese production levels. EU ETS carbon fell 1.8% week-on-week to average €6.0/t, and ended the week on €6.0/t. This week UK MEP Ian Duncan published his report on post-2020 EU ETS reforms, proposing to stick to the European Commission’s plan for a linear reduction factor of 2.2% per year.
Energy Wholesale Market Review Week Ending 3rd June 2016
Written By Graham Paul