Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 30th September 2016
This week, all gas and power contracts and commodities experienced price gains. Day-ahead gas went up 4.4% to 35.5p/th, reaching a two-month high on Thursday of 35.9p/th. Day-ahead power jumped 26.7% to £51.0/MWh, despite lower demand this week. Winter 16 power climbed 8.7% to £51.4/MWh, The contract followed its gas counterpart higher. On Thursday, the winter 16 power contract experienced the largest single day gain in over eight years, upon reports that France may extend nuclear outages. On average Brent crude oil prices rose 1.0% this week to average $47.1/bl. Nervous trade drove volatility leading up to the meeting of OPEC and non-OPEC members in Algeria this week. As a result, OPEC members agreed on a preliminary outline to cut its collective output, which caused prices to edge higher. On average API 2 coal prices gained 5.6% this week to average $62.5/t, On 29 September API 2 coal increased $3.4/t to $64.8/t, the highest price since January 2015. On Wednesday, EU ETS carbon rose €0.3/t to €5.0/t, a ten-week high.
Energy Wholesale Market Review Week Ending 30th September 2016
Energy Wholesale Market Review Week Ending 23rd September 2016
This week day-ahead baseload power dropped 74.5% to £40.3/MWh. Last week, on Friday 16 September, day-ahead power rocketed to £157.7/MWh, the highest price since March 2006. Consequently, the day-ahead clean spark spread (gas) dropped 93.2% to £8.8/MWh this week, while the day-ahead clean dark spread (coal) fell from last week’s high of £120.95/MWh, to £2.4/MWh. Winter 16 power increased 3.3% to £47.3/MWh, following its gas counterpart higher. Day-ahead gas gained 18.7% to 34.0p/th, despite lower demand this week. Winter 16 gas moved 6.3% higher to 41.5p/th. On average Brent crude oil prices declined 0.4% this week to $46.6/bl.
Prices reached a five-week low of $45.5/bl on Tuesday 20 September, as a rise in US stockpiles added to the ongoing global oversupply which outweighed OPEC comments that a possible production freeze agreement could last longer than expected. On average API 2 coal prices gained 3.9% this week to $59.1/t, with prices at a five-week high of $60.0/t on Thursday 22 September. On average EU ETS carbon prices rose 7.2% to €4.3/t.
Energy Wholesale Market Review Week Ending 23rd September 2016
Energy Wholesale Market Review Week Ending 16th September 2016
Day-ahead baseload power rocketed 339.4% to £157.7/MWh on Friday 16 September, with tightening supply margins. This was the highest price since March 2006, following a likely drop in peak wind power generation to around 1GW on Monday 19 September. Planned outages with the French and Dutch interconnectors are expected to lower continental European imports by 2GW. The price spike caused the day-ahead clean spark spread to surge 1,104.0% to £130.0/MWh this week, while the day-ahead clean dark spread soared from -£0.1/MWh to £121.1/MWh. Week-on-week winter 16 power increased by 3.2% to £45.8/MWh, following its gas counterpart higher. Day-ahead gas went up 15.1% to 28.7p/th, amid higher demand. Gas for winter 16 rose 2.3% to 39.0p/th. Week-on-week, Brent crude oil prices declined 7.0% to $45.9/bl, and on average lost 3.2% $46.8/bl. Prices slipped after the IEA forecast that the market will be oversupplied at least through the first six months of 2017. Week-on-week API 2 coal prices climbed 2.7% to $57.8/t. EU ETS carbon gained 2.7% to €4.2/t.
Energy Wholesale Market Review Week Ending 16th September 2016
Energy Wholesale Market Review Week Ending 2nd September 2016
The majority of wholesale power and gas contracts declined this week, with multiple contracts reaching new lows on Thursday 1 September. Day-ahead gas slid to 21.5p/th on Thursday, the lowest price since October 2009, caused by a sharp rise in LNG imports which left the system oversupplied. In addition, day-ahead power reached an eight-month low of £30.3/MWh, the winter 16 gas contract fell to an 11-week low of 39.0p/th, and the winter 16 power contract hit a 10-week low of £44.9/MWh. Week-on-week winter 16 gas was down 2.3% to 39.2p/th, following oil prices lower. Winter 16 power slipped 0.9% to £45.2/MWh. The day-ahead clean dark spread (coal) slipped further negative, falling to -£5.1/MWh. Brent crude oil prices fell 3.4% this week to average $47.5/bl. On Friday 2 September, prices dropped to $45.8/bl, a new three-week low, amid high US and global crude inventory levels. EU ETS carbon prices dropped 6.7% to average €4.4/t. On Friday, EU ETS carbon plummeted to €4.0/t, the lowest price in over three years, as supply increased after a reduced auction calendar in August.
Energy Wholesale Market Review Week Ending 2nd September 2016
Written By Graham Paul