Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 26th May 2017
Lower prompt gas prices and high levels of renewables output pushed most near-term baseload power contracts down this week. Day-ahead power dropped 9.0% to £36.9/MWh, a near eight-month low. Throughout the week, the contract was driven down by record high levels of solar PV output, which hit 8.7GW on Friday, and a reduction in gas prices. In contrast, all seasonal baseload power contracts experienced gains, following seasonal gas contracts upward. Winter 17 power lifted 0.4% to £45.8/MWh. Day-ahead peak power dropped 10.4% to £37.8/MWh, as forecasts of record high solar output curtailed daytime electricity demand. The contract ended the week just £0.9/MWh above its baseload counterpart. All near-term gas contracts experienced losses this week, following international gas and oil prices downward. Day-ahead gas fell 5.8% week-on-week to 36.5p/th. In contrast, all seasonal gas contracts increased this week. Winter 17 gas lifted 0.4% to 46.1p/th. Brent crude oil prices experienced a turbulent week. Despite ending the week down, on average prices went up 2.6% to $53.4/bl. Prices rose to a five-week high of $54.4/bl on Wednesday, pushed upwards by increasing confidence that OPEC and other large oil producers would come to an agreement to extend current output cuts. On Friday, prices dropped to $51.8/bl, amid disappointment that deeper production cuts were not implemented. EU ETS carbon prices gained 7.4% this week to average €5.0/t. On Friday, prices hit a seven-week high of €5.1/t.
Energy Wholesale Market Review Week Ending 26th May 2017
Energy Wholesale Market Review Week Ending 19th May 2017
Higher commodity prices pushed all power contracts upwards this week. Day-ahead baseload power increased by 5.4% to £40.6/MWh, following its gas counterpart upwards. On Tuesday afternoon, day-ahead baseload power jumped to £54.0/MWh, a three-month high, with an unplanned shutdown at the Heysham 2-7 nuclear unit, as well as higher demand and a sharp decline in forecast wind generation forecast for the following day. Within-day half-hourly contract prices on Wednesday reached £478.7/MWh as a result of tight supply margins. The month-ahead contract (June) climbed by 4.6% to £38.8/MWh. All seasonal baseload power contracts experienced gains. Winter 17 power went up 2.7% to £45.6/MWh. Week-on-week, day-ahead peak power increased 3.0% to £42.2/MWh, with higher peak power demand. All gas contracts experienced gains this week, following international gas prices and oil prices upwards. Day-ahead gas rose 2.0% week-on-week to 38.8p/th, amid an undersupplied system on Friday and a reduction in LNG supplies. The month-ahead (June) gas contract went up 5.1% to 37.4p/th. All seasonal gas contracts increased. Winter 17 gas climbed 3.6% to 45.9p/th. On average, Brent crude oil prices went up 4.5% to $52.1/bl. Brent crude oil jumped to a four-week high of $53.1/bl on Friday. Prices were supported upon higher expectations that OPEC members will extend current production cuts into the second half of 2017. API 2 coal prices also rose, up 1.5% to average $64.8/t.
Energy Wholesale Market Review Week Ending 19th May 2017
Energy Wholesale Market Review Week Ending 12th May 2017
All gas and power contracts, as well as coal and carbon prices, experienced losses this week. Day-ahead power and gas contracts hit one-month lows, whilst coal and carbon hit six-week and five-month lows, respectively. All near-term baseload power contracts lowered this week, owing to reductions in their gas counterparts. Week-on-week, the day-ahead power contract lost 9.6% to £38.5/MWh, with higher wind generation forecast for Monday. The month-ahead contract (June) slipped 3.4% to £37.1/MWh. All seasonal baseload power contracts experienced losses. Winter 17 power went down 1.7% to £44.4/MWh. All near-term gas contracts experienced losses, with both lower national and regional gas demand. Day-ahead gas fell 7.0% week-on-week to 38.0p/th, amid expectations of higher Norwegian gas imports. The month-ahead (June) contract slipped 4.1% to 35.6p/th. Seasonal gas contracts all experienced declines this week. Winter 17 gas lost 2.1% to 44.3p/th. Summer 18 gas fell by 2.4% to 38.1p/th. On average for the week, Brent crude oil prices went down 1.8% to $49.8/bl, following OPEC predictions of a rise in crude production from non-member countries. However, prices picked up on Friday to finish the week on $50.7/bl. API 2 coal prices declined 3.2% to average $63.8/t across the week. Prices fell to a six-week low of $63.3/t on Friday.
Energy Wholesale Market Review Week Ending 12th May 2017
Energy Wholesale Market Review Week Ending 5th May 2017
Lower commodity prices pulled all seasonal gas and power contracts down this week. The majority of near-term gas and power contracts also fell, with lower demand amid milder temperatures. Brent crude oil prices dropped to a 2017 low, with coal and carbon prices also experiencing pressure. Nearly all near-term baseload power contracts lowered this week, owing to reductions in their gas counterparts. The only exception was the day-ahead power contract, which rose 4.5% to £42.6/MWh, with low wind generation forecast for Monday. The month-ahead contract (June) slipped 0.9% to £38.4/MWh. All seasonal baseload power contracts experienced losses this week. Winter 17 power went down 1.0% to £45.2/MWh. Most near-term gas contracts experienced losses, owing to lower European gas prices and decreased Brent crude oil prices. The only exception was day-ahead gas, which climbed 0.2% week-on-week to 40.9p/th. The new month-ahead (June) contract went down 2.9% to 37.1p/th. Seasonal gas contracts all experienced declines this week. Winter 17 gas lost 1.7% to 45.3p/th. Summer 18 gas fell by 1.6% to 39.0p/th. On average, Brent crude oil prices went down 2.1% to $50.7/bl. On Friday, Brent crude oil plummeted to $48.8/bl, a five-month low, amid concerns that OPEC-led output cuts will fail to reduce global oversupply. This was the lowest price since prior to the OPEC-led output cut agreement on 29 November 2016. API 2 coal prices remained steady to average $65.9/t.
Energy Wholesale Market Review Week Ending 5th May 2017
Written By Graham Paul