Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 24th February 2017
The majority of near-term gas and power contracts experienced losses this week, driven by milder temperatures. In contrast, seasonal gas and power contracts mostly gained. Day-ahead gas lost 2.7% week-on-week to 46.3p/th, amid an oversupplied system on Friday. The month-ahead contract slipped 4.6% to 46.1p/th. In contrast, most seasonal gas contracts experienced slight gains. The only exception was summer 17 gas, which lost 0.4% to 43.5p/th, with lower than expected gas injection demand, amid injection outages at Rough gas storage site, leading to higher system supply levels. Most near-term baseload power contracts decreased this week, following the gas market downwards and owing to lower power demand due to milder temperatures. The only exception was day-ahead baseload power, which week-on-week gained 0.3% to £46.4/MWh. Prices dipped midweek however as a result of high levels of wind generation. The month-ahead contract lost 1.8% to £46.1/MWh. On average, Brent crude oil prices were little changed this week, lifting 0.7% to average $56.3/bl. Week-on-week prices rose by 1.6% to $56.3/bl. On Tuesday, prices reached a two-week high of $56.9/bl. Prices were supported by optimism regarding the success of OPEC-led production cuts and growing Asian demand. API 2 coal prices went up 2.9% to average $68.1/t. Week-on-week, prices gained 2.0% to $68.6/t. On Monday, prices reached a three-month high of $69.2/t. EU ETS carbon prices gained 2.0% this week to average €5.1/t. Week-on-week prices rose 9.8% to €5.4/t.
Energy Wholesale Market Review Week Ending 24th February 2017.
Energy Wholesale Market Review Week Ending 17th February 2017
Gas and power contracts fell across the board this week, with many contracts slipping to multi-month lows. Day-ahead gas lost 9.8% week-on-week to 47.6p/th, a two-month low, driven by lower demand amid milder temperatures and higher wind output. The month-ahead contract went down 6.7% to 48.3p/th, and the summer 17 contract trimmed 3.6% to 43.7p/th. It was announced that GB’s largest gas storage facility, Rough, will be unable to inject further gas until July this year. This will lower injection demand during this period and has weighed on gas contracts out to summer 17. Power contracts followed their gas counterparts. Day-ahead power slipped 8.0% to £46.3/MWh, nearly a two-month low, while the month-ahead power contract (March) went down 6.1% to £46.9/MWh. Week-on-week, Brent crude oil prices declined 1.6% to $55.4/bl. Prices began the week at $56.4/bl but steadily declined to $55.4/bl by Friday as concerns over potential increases in US production outweighed reports that OPEC have been delivering their agreed production cuts. EU ETS carbon prices declined by 3.1% to average €5.0/t, and hit a one-month low of €4.9/t on Friday. The vote by the European Parliament on Wednesday backing proposals to reform the EU ETS beyond 2021 had little effect on the current market, which remains oversupplied.
Energy Wholesale Market Review Week Ending 17th February 2017.
Energy Wholesale Market Review Week Ending 10th February 2017
This week all gas prices and the majority of power prices decreased, despite higher demand levels due to lower temperatures. On average, Brent crude oil and EU ETS carbon prices also experienced losses. In contrast, average API 2 coal prices moved higher. Day-ahead gas lost 13.6% week-on-week to 52.7p/th, amid an oversupplied system on Friday. The month-ahead contract went down 13.1% to 51.8p/th. All seasonal gas contracts experienced losses, falling by an average of 1.9%. Week-on-week, day-ahead power slipped 10.3% to £50.3/MWh, with lower gas prices and higher wind generation forecast for Monday. The month-ahead contract (March) went down 10.1% to £50.0/MWh, owing to a bearish gas market. The majority of seasonal contracts experienced losses, also following gas prices downward. Brent crude oil prices slipped 0.6% this week to average $55.8/bl, and week-on-week prices lost 1.1% to $56.3/bl. On Wednesday, prices slipped to $54.7/bl, a three-week low, after American Petroleum Institute data showed US crude supplies increased by 14.2mn barrels last week. API 2 coal prices went down 2.2% week-on-week to $66.5/t, but on average gained by 0.9% to average $66.7/t. EU ETS carbon prices declined by 1.3% to average €5.2/t, however week-on-week gained 1.1% to €5.3/t.
Energy Wholesale Market Review Week Ending 10th February 2017.
Energy Wholesale Market Review Week Ending 3rd February 2017
This week all gas prices increased, with most baseload and peak power contracts following higher. Brent crude oil and EU ETS carbon prices both gained, whereas API 2 coal prices moved lower. All near-term baseload power contracts climbed this week, despite lower demand levels amid higher temperatures. Week-on-week, day-ahead power rose 13.7% to £56.0/MWh, with lower wind generation forecast for Monday. Contracts moved forward this week. The new month-ahead baseload power contract (March) went up 10.9% to £55.6/MWh, supported by higher gas prices. All gas contracts increased, despite lower demand amid higher temperatures. Day-ahead gas gained 19.4% week-on-week to 61.0p/th, its highest price since March 2014, owing to higher European gas prices and a weaker pound. The month-ahead contract went up 16.9% to 59.6p/th. Week-on-week Brent crude oil prices increased 2.3% to $56.9/bl, and on average rose 1.6% to $56.2/bl. On Thursday, prices leapt $1.5/bl to $57.4/bl, a four-week high. API 2 coal prices went up 5.4% week-on-week to $68.0/t, but on average slipped by 1.5% to average $66.1/t. EU ETS carbon prices gained by 2.9% to average €5.3/t. Week-on-week prices went up by 3.4% to €5.2/t.
Energy Wholesale Market Review Week Ending 3rd February 2017.
Written By Graham Paul