Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 25th August 2017
Several power and gas contracts hit new multi-month highs this week, along with API 2 coal and EU ETS carbon prices. Baseload power contracts experienced mixed movements this week. Day-ahead baseload power dropped 8.4% to £43.5/MWh. September 17 power slipped 0.1% to £49.6/MWh on Friday. However, on Monday the contract reached £50.5/MWh, the highest price on our records. The contract is now 28.7% above its level this time last year (£38.5/MWh). The October 17 and Q417 contracts also reached the highest levels on our records, at £47.5/MWh and £50.0/MWh respectively. Winter 17 power gained 2.1% to £50.3/MWh and reached a seven-month high of £50.4/MWh on Thursday. All near-term gas contracts increased this week, hitting new highs. Week-on-week, the day-ahead contract rose 1.0% to 44.4p/th. On Thursday, day-ahead gas hit a near six-month high of 45.2p/th, with low imports from Norway contributing to an undersupplied system. The month-ahead contract rose to 44.7p/th. On Thursday, the contract reached 45.2p/th the highest price on our records for the contract. Brent crude oil prices increased 2.3% to average $52.2/bl. API 2 coal rose 2.1% to average $78.0/t. On Friday, prices reached $78.8/t, the highest price since September 2014. EU ETS carbon prices increased 3.9% this week.
Energy Wholesale Market Review Week Ending 25th August 2017
Energy Wholesale Market Review Week Ending 18th August 2017
Several power and gas contracts hit new highs this week along with API 2 coal prices. All baseload power contracts moved higher this week. Day-ahead baseload power increased 10.5% week-on-week, reaching £47.5/MWh, a fresh five-week high. September 17 power reached £49.6/MWh on Friday, the highest price on our records for the contract. Prices were supported by concerns of nuclear power outages in France. Winter 17 power ended the week at a seven-month high of £49.25/MWh. Like their baseload counterparts, all peak power contracts increased this week. All near-term gas contracts increased this week. Week-on-week, the day-ahead contract rose 2.9% to a fresh five-month high of 44.0p/th, amid restricted flows caused by ongoing maintenance in Norway and the UKCS. On Friday, the month-ahead gas contract rose to 43.98p/th, the highest price on our records for the contract. Near-term prices were generally supported by concerns about the reliability of supply with extensions to Norwegian outages, sparse LNG arrivals and storage site issues. Most seasonal gas contracts experienced losses this week. Summer 18 gas slipped 0.5% to 41.2p/th. On Thursday, winter 17 gas reached a five-month high of 48.23p/th. Brent crude oil prices slipped 2.4% to average $51.0/bl, with continued concerns over rising crude output from OPEC members and the US. API 2 coal rose 1.0% to average $76.4/t. On Friday, coal prices reached $78.50/t, the highest price since September 2014, with strong Asian demand and following the oil market upwards.
Energy Wholesale Market Review Week Ending 18th August 2017
Energy Wholesale Market Review Week Ending 11th August 2017
A number of power and gas contracts hit multi-month highs this week along with Brent crude oil and API 2 coal prices. EU ETS carbon prices also experienced gains. Day-ahead baseload power ranged between £41.0/MWh and £44.0/MWh, ending the week up 2.4% on the previous Friday at £43.0/MWh, due to lower wind generation forecast for Monday. The month-ahead power contract (September) increased 4.2% to £47.3/MWh. All seasonal baseload power contracts moved higher this week, hitting multi-month highs. Winter 17 power climbed 2.8% to £48.0/MWh, a five-month high, while summer 18 power rose 2.5% to £41.6/MWh, a six-month high. Week-on-week, the day-ahead gas contract rose 8.8% to 42.7p/th, a five-month high, with an unplanned outage at the Cygnus gas field contributing to an undersupplied system. The month-ahead (September) contract gained 8.0% to 42.9p/th, and the contract is now 5.3% above its level this time last year (37.6p/th). All seasonal gas contracts rose this week, also hitting multi-month highs. Week-on-week, winter 17 gas moved 4.4% higher to 47.8p/th, and summer 18 gas went up 3.9% to 41.4p/th, both of which were five-month highs. Brent crude oil prices climbed 0.1% to average $52.3/bl. On Thursday, Brent crude oil reached an eleven-week high of $53.3/bl. API 2 coal rose 1.5% to average $75.7/t. On Thursday, prices hit a nine-month high of $76.5/t.
Energy Wholesale Market Review Week Ending 11th August 2017
Energy Wholesale Market Review Week Ending 4th August 2017
Commodity prices hit multi-month highs this week, with Brent crude oil, API 2 coal and EU ETS carbon all experiencing gains. The majority of gas and power contracts also moved higher. Day-ahead baseload power gained 4.6% to £42.0/MWh, with a significant drop in wind generation forecast for Monday. The new month-ahead contract (September) increased by 2.9% to £45.4/MWh. Summer 18 power rose 1.5% to a five-month high of £40.6/MWh. Week-on-week, the day-ahead gas contract rose 1.9% to 39.3p/th, as the ongoing outage at the Kollsnes gas processing plant continued to restrict imports from Norway. On Monday, day-ahead gas reached a two-month high of 40.0p/th. The month-ahead (September) gas contract lifted 0.6% to 39.8p/th. Brent crude oil prices climbed 4.4% to average $52.2/bl, despite being little changed on prices from last Friday. On Tuesday, Brent crude oil reached a two-month high of $52.7/bl, amid expectations that US crude inventories decreased for a fifth consecutive week. However, on Friday Brent crude oil prices reversed gains amid concerns over US crude production, which hit 9.4mn bl/d, its highest level since August 2015. API 2 coal rose 2.0% to average $74.6/t. On Monday, prices hit an eight-month high of $75.8/t. Continued strong demand from China and supply disruptions in Australia pushed prices higher. EU ETS carbon prices increased 3.3% this week to average €5.3/t.
Energy Wholesale Market Review Week Ending 4th August 2017
Written By Graham Paul
