Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th April 2017
This week most near-term gas contracts increased, whilst near-term baseload power contracts were mixed. In contrast, all seasonal gas and power contracts declined, following Brent crude oil, API 2 coal and EU ETS carbon prices downwards. Most near-term gas contracts experienced gains this week. Day-ahead gas climbed 3.2% week-on-week to 40.8p/th, amid higher than seasonal normal demand owing to lower temperatures. The month-ahead gas contract rose 1.8% to 40.4p/th. Seasonal gas contracts all experienced declines this week. Winter 17 gas lost 0.5% to 46.1p/th. Near-term baseload power contracts experienced mixed movements this week. The day-ahead baseload power contract was unchanged at £40.8/MWh, despite low demand levels forecast for Monday. The month-ahead contract (May) rose 1.5% to £40.9/MWh. All seasonal baseload power contracts experienced losses this week. Winter 17 power went down 0.3% to £45.7/MWh. On average, Brent crude oil prices went down 4.9% to $51.8/bl. On Thursday, Brent crude oil dropped to $50.7/bl, a fresh four-week low, driven lower by continued global oversupply, an increase in US gasoline inventories and as Libya’s largest oilfield, Sharara, came back online following protest blockages. API 2 coal prices slipped 0.1% to average $65.9/t. On Wednesday, API 2 coal fell to $65.0/t, a two-week low. National Grid confirmed on Friday 21 April that it had supplied Great Britain’s electricity demand for the first 24-hour period without coal generation since the 1880s.
Energy Wholesale Market Review Week Ending 28th April 2017
Energy Wholesale Market Review Week Ending 21st April 2017
This week, lower temperatures raised power and gas demand, leading to higher near-term power and gas prices. In contrast, seasonal gas and baseload power prices experienced mixed movements. Day-ahead gas climbed 1.5% week-on-week to 39.5p/th, amid higher than seasonal normal demand owing to lower temperatures. The month-ahead contract rose 2.4% to 39.7p/th. Seasonal gas contracts declined by 0.2% on average. The day-ahead power contract went up 3.7% to £40.8/MWh, with higher demand forecast for Monday. Near-term power prices followed the gas market higher, also owing to higher demand levels amid lower temperatures. In addition, forecast wind generation levels were lower this week, in comparison to last week. The month-ahead contract (May) rose 0.7% to £40.3/MWh. Seasonal baseload power contracts experienced mixed movements this week, but on average lost 0.3%. On average, Brent crude oil prices went down 2.8% to $54.4/bl. The commodity ended the week at $53.0/bl, a result of concerns that OPEC-led production cuts will not reduce a global oversupply of oil. API 2 coal prices gained 1.3% to average $66.0/t. On Friday, API 2 coal lifted to $67.0/t, a two-week high. EU ETS carbon prices slipped 0.8% this week to average €4.9/t.
Energy Wholesale Market Review Week Ending 21st April 2017
Energy Wholesale Market Review Week Ending 13th April 2017
Last week, all gas and power contracts decreased. API 2 coal prices also fell, whereas Brent crude oil and EU ETS carbon prices climbed. All near-term baseload power contracts decreased, amid lower power demand due to higher temperatures. The day-ahead power contract went down 6.4% to £39.3/MWh, with higher wind generation forecast for the following day and lower gas prices. On Tuesday, day-ahead power dropped to £38.4/MWh, a six-month low. All seasonal baseload power contracts experienced losses last week, following the gas market downwards. All peak power contracts also decreased, following their baseload counterparts lower. All gas contracts experienced losses last week. Day-ahead gas trimmed 4.3% week-on-week to 38.9p/th. On Wednesday, the contract fell to 38.3p/th, a two-week low, amid lower than seasonal normal demand. Winter 17 gas lost 1.5% to 46.6p/th. Centrica confirmed on Wednesday that based upon the results of its well testing program, the Rough gas storage facility cannot safely recommence injection operations in the 2017-18 storage year. On the day, gas contracts out to, and including, Q317 reacted by falling. In contrast, prices for next winter were supported. On average, Brent crude oil prices went up 3.2% to $56.0/bl. Prices were supported amid optimism that OPEC and other crude oil producing nations will extend production cuts beyond June. On Wednesday, prices reached a six-week high of $56.6/bl.
Energy Wholesale Market Review Week Ending 13th April 2017
Energy Wholesale Market Review Week Ending 7th April 2017
This week, most baseload power contracts and seasonal gas contracts experienced gains, along with oil, coal and carbon prices. However, near-term gas prices experienced mixed movements, and most peak power contracts moved lower. Contracts moved forward this week, including the seasonal and annual contracts. Most near-term baseload power contracts increased, despite lower power demand due to higher temperatures. The day-ahead power contract went up 3.7% to £42.0/MWh, owing to higher gas prices and increased European power prices. The new month-ahead contract (May) rose 0.2% to £41.3/MWh, while the majority of seasonal baseload power contracts also experienced gains. Most near-term peak power contracts decreased this week. Day-ahead peak power lost 0.6% to £41.5/MWh. On Friday, the contract dropped £0.5/MWh below its baseload counterpart, a situation that can occur when high levels of solar PV output are forecast. Near-term gas contracts experienced mixed movements this week. Day-ahead gas rose 1.1% week-on-week to 40.7p/th, amid an undersupplied system. Most seasonal gas contracts increased. Winter 17 gas climbed 0.8% to 47.3p/th. On average, Brent crude oil prices went up 5.1% to $54.3/bl. Prices were supported amid optimism that OPEC and other crude oil producing nations will extend production cuts beyond June. On Friday, prices jumped to a new one-month high of $55.6/bl, as a US airstrike on a Syrian government airbase increased geopolitical uncertainty in the Middle East.
Energy Wholesale Market Review Week Ending 7th April 2017
Written By Graham Paul
