Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 31st March 2017
This week, nearly all gas and power contracts experienced slight gains. This contrasted with last week when many reached the lowest levels seen during 2017. Power and gas prices were supported by higher oil and coal prices and ongoing outages at Rough gas storage site. Day-ahead gas rose 2.8% week-on-week to 40.2p/th. However, on Tuesday, the contract fell to a new five-month low of 38.0p/th, amid warmer temperatures. Seasonal gas contracts all increased this week, with summer 17 gas up 3.4% to 40.4p/th. With the exception of the day-ahead contract, all baseload power contracts rose this week, owing to higher gas prices. Week-on-week day-ahead power slipped 4.4% to £40.5/MWh. On Wednesday, day-ahead power dropped to £38.8/MWh, a five-month low, with weakening power demand amid milder than normal temperatures and higher wind generation forecast for the following day. All seasonal baseload power contracts experienced gains this week. Most near-term peak power contracts increased this week, following their baseload counterparts and the gas market upwards. The only exception was day-ahead peak power, which lost 2.3% to £41.8/MWh. On average, Brent crude oil prices went up 1.2% to $51.6/bl. Prices were supported amid optimism that OPEC and other crude oil producing nations will extend production cuts. API 2 coal prices rose 1.7% to average $64.4/t. EU ETS carbon prices lost 4.2% this week to average €4.8/t.
Energy Wholesale Market Review Week Ending 31st March 2017
Energy Wholesale Market Review Week Ending 24th March 2017
Falling commodity prices and forecasts of milder weather drove the majority of power and gas contracts down this week, some reaching their lowest in 2017 so far. Day-ahead gas lost 4.9% week-on-week to 39.1p/th, a five-month low, as the scheduled arrivals of LNG tankers drove the contract down. The month-ahead gas contract slipped 5.9% to 39.1p/th, a 2017 low, with above-average temperatures forecast for Q217. Annual April 17 gas went down 3.2% to 42.3p/th. With the exception of the day-ahead contract, all power contracts decreased this week, following their gas counterparts lower. Day-ahead power gained 1.4% to £42.4/MWh. The month-ahead contract (April) lost 4.0% to £40.7/MWh, a 2017 low, and summer 17 power trimmed 2.8% to £40.2/MWh. Brent crude oil prices slipped 2.5% to $50.8/bl, as concerns over rising US crude inventory levels continued to outweigh OPEC-led production cuts. On Wednesday 22 March, Brent crude oil plummeted $1.8/bl to a near four-month low of $50.2/bl, and there are now concerns the global oil glut will last throughout 2017 and even into next year. EU ETS carbon prices lost 4.8% to €4.9/t, a five-week low, as the ongoing surplus of allowances in the market continued. All clean spark spreads along the forward curve are higher than their corresponding clean dark spreads. The annual clean spark spread is currently £5.4/MWh, 109.3% higher than the current annual clean dark spread of £2.6/MWh.
Energy Wholesale Market Review Week Ending 24th March 2017
Energy Wholesale Market Review Week Ending 17th March 2017
This week, there was a fall in all gas contracts, as well as a decrease in all near-term and most seasonal power contracts. Brent crude oil prices and EU ETS carbon prices also moved downwards, whereas API 2 coal prices increased. All gas contracts experienced declines this week, with lower gas demand due to higher temperatures. Day-ahead gas lost 2.8% week-on-week to 41.1p/th, amid an oversupplied system with comfortable gas supplies. The month-ahead contract slipped 2.2% to 41.5p/th. Overall, seasonal contracts averaged declines of 1.7%. All near-term baseload power contracts decreased this week, owing to lower gas prices and reduced power demand amid milder temperatures. Week-on-week day-ahead power fell 3.2% to £41.8/MWh. The month-ahead contract (April) lost 2.2% to £42.4/MWh. The majority of seasonal baseload power contracts experienced losses this week. Summer 17 power decreased 1.3% to £41.3/MWh. In contrast, summer 19 power remained at £42.0/MWh. On average, Brent crude oil prices slipped 4.7% to $51.8/bl, with concerns over rising US crude production and a potential increase in US shale output. However, prices ended the week at $52.1/bl, down just 0.6% on last Friday. On Tuesday 14 March, Brent crude oil dropped to $50.8/bl, a three-month low, after an OPEC report showed an increase in both Saudi Arabian and US crude production in February. API 2 coal prices went up 0.3% to average $65.2/t. However, prices ended the week at $64.5/t, unchanged compared to last Friday. EU ETS carbon prices lost 2.5% this week to average €5.2/t, despite ending the week 1.4% above last Friday at €5.2/t.
Energy Wholesale Market Review Week Ending 17th March 2017
Energy Wholesale Market Review Week Ending 10th March 2017
This week, there was a fall in all near-term gas and power contracts, along with Brent crude oil prices, API 2 coal prices and EU ETS carbon prices. However, seasonal gas and power contracts experienced mixed movements. All near-term gas contracts experienced declines this week, with lower gas demand amid milder temperatures. Day-ahead gas lost 2.2% week-on-week to 42.3p/th, with comfortable supplies. On Thursday, day-ahead gas fell to 41.8p/th, a new three-month low, amid lower than seasonal normal demand. All near-term baseload power contracts decreased this week, owing to lower gas prices and reduced power demand amid milder temperatures. Week-on-week day-ahead baseload power fell 4.6% to £43.2/MWh. On average, Brent crude oil prices slipped 3.0% to $54.4/bl, following reports that US crude oil stockpiles had experienced a streak of nine weekly gains seen since the start of 2017. Week-on-week, prices lost 5.3% to $52.4/bl. On Thursday, Brent crude oil plummeted to a three-month low of $52.1/bl, after data showed that US crude inventories rose to an all-time high in the previous week. API 2 coal prices went down 3.7% to average $65.0/t. Week-on-week prices lost 5.1% to $64.5/t. On Thursday, API 2 coal reached a two-month low of $63.7/t. EU ETS carbon prices lost 2.6% this week to average €5.3/t. Week-on-week the change was of greater magnitude, down 8.3% to €5.1/t.
Energy Wholesale Market Review Week Ending 10th March 2017
Written By Graham Paul
