Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 27th January 2017
This week, all gas contracts and near-term baseload power contracts decreased. The majority of seasonal baseload power contracts also experienced losses. Day-ahead power declined 12.1% to £49.3/MWh, with higher wind generation forecast for Monday. The month-ahead contract (February) went down 6.2% to £50.9/MWh. Day-ahead gas slipped 7.6% week-on-week to 51.1p/th, amid an oversupplied system on Friday. The month-ahead contract fell 5.9% to 51.6p/th. Week-on-week Brent crude oil prices rose 1.6% to end the week on $55.6/bl. Across the week prices averaged $55.3/bl, an increase of 0.2% on the week before. Prices were pushed upwards after Algeria’s energy minister suggested that OPEC members and non-OPEC countries were due to hit their output reduction targets next month. Week-on-week API 2 coal prices slipped 3.7% to $64.5/t on Friday. Across the week, average prices lost 1.0% to $67.1/t. On Friday 27 January, prices slipped to a two-week low of $64.5/t. Week-on-week EU ETS carbon prices fell by 2.3% to €5.1/t on Friday, but the weekly average gained by 3.6% to €5.1/t.
Energy Wholesale Market Review Week Ending 27th January 2017.
Energy Wholesale Market Review Week Ending 20th January 2017
This week most gas contracts experienced gains with higher gas demand amid lower temperatures. However, most near-term baseload power contracts decreased this week, despite higher power demand levels. The majority of seasonal baseload power contracts climbed, following gas prices upwards. Day-ahead gas rose 1.5% week-on-week to 55.3p/th, amid higher than seasonal- normal demand and an undersupplied system. National system gas demand went up 6.2% this week to average 314.7mcm/day, with lower temperatures this week. The month-ahead contract climbed 0.3% to 54.8p/th. Day-ahead baseload power declined 2.2% to £56.0/MWh, despite lower wind generation forecast for Monday. The month-ahead contract (February) went down 2.7% to £54.3/MWh. Brent crude oil prices ended the week on $54.7/bl, a reduction of 1.2% on the previous week. Prices fell amid a stronger US dollar and US Energy Information Administration projections that US shale production would increase by 40,750bl/d in February. API 2 coal prices lost 0.8% to $67.0/t. EU ETS carbon prices went up by 3.2% to €5.2/t. EU ETS carbon prices hit a one-month low of €4.8/t on Monday.
Energy Wholesale Market Review Week Ending 20th January 2017.
Energy Wholesale Market Review Week Ending 13th January 2017
This week all gas contracts and most power contracts increased. In contrast, commodity prices experienced losses. Day-ahead gas gained 7.7% week-on-week to 54.5p/th, despite system oversupply on Friday. On Thursday, day-ahead gas reached 56.8p/th, the highest price in over two years, with the Met Office issuing national severe weather warnings for snow and wind. Day-ahead baseload power surged 17.8% to £57.3/MWh, with higher demand and lower wind generation forecast for Monday. The majority of seasonal contracts experienced gains, following gas prices upwards. Summer 17 power increased 0.7% to £45.8/MWh. Brent crude oil prices lost 2.8% this week to average $55.3/bl. On Wednesday, prices reached a three-week low of $54.1/bl. Prices slipped as doubts continued to linger over the likelihood of OPEC members fulfilling their agreed production cuts. API 2 coal prices slipped 3.4% to average $65.1/t this week. EU ETS carbon prices fell by 9.3% to a weekly average of €5.3/t. On Friday, carbon prices reached a three-week low of €5.0/t.
Energy Wholesale Market Review Week Ending 13th January 2017.
Energy Wholesale Market Review Week Ending 6th January 2017
This week contracts moved forward as the new year began, with nearly all gas and power contracts experiencing losses, along with the price of coal and carbon. In contrast, oil prices increased. Day-ahead gas lost 5.1% to 50.6p/th, amid system oversupply on Friday. The new month-ahead (February) contract slipped 1.5% to 51.4p/th. On 9 December, gas withdrawals from Rough gas storage facility restarted, following restricted operations at the site due to safety checks. All seasonal gas contracts experienced losses. Day-ahead power fell 1.3% to £48.6/MWh, with higher wind generation forecast for Monday. The month-ahead contract decreased 8.8% to £54.0/MWh. The majority of seasonal contracts experienced losses. Brent crude oil prices gained 1.9% this week to average $56.9/bl. Prices were supported as Saudi Arabia reported that production fell by at least 486,000bl/d in January. On Monday prices rose to an 18-month high of $58.0/bl. API 2 coal prices slipped 0.9% to average $67.4/t. On Thursday prices surged to $69.0/t, a six-week high. EU ETS carbon prices fell by 6.9% to average €5.9/t.
Energy Wholesale Market Review Week Ending 6th January 2017.
Written By Graham Paul